Building materials group Grafton is expecting further strong growth after reporting first half results that comfortably beat market forecasts.
Turnover was 20 per cent higher at €470 million (£370 million) while pre-tax profits rose 32 per cent to €27.1 million. Analysts are expected to revise their full-year forecasts upwards from current figures of €60 million in profits and earnings per share of 31 cents.
Grafton benefited from an exceptionally strong performance in the UK, where turnover rose 27 per cent to €303.5 million, while operating profits were 35 per cent higher at €16.5 million.
The results in the UK were boosted by acquisitions worth €35 million, which added sales of €63 million. Like-for-like sales from existing businesses were also six per cent higher. Margins in the UK improved from 5.1 per cent to 5.5 per cent.
In Ireland, most of Grafton's business is in the repair and maintenance sector and DIY via its Woodie's DIY stores. As a result, the group was insulated to a substantial degree from the slowdown in the domestic housing industry
Overall turnover in Ireland was up 8 per cent on €166.4 million with the best performance coming from the Woodie's DIY stores where turnover was up 24 per cent to €41.5 million. with like-for-like sales growth of 17 per cent.
Grafton shareholders are to benefit from the strong first-half performance with the interim dividend increased by 32 per cent to 3.25 cents per share.
