Grafton Group, the builders' providers and Woodies DIY company, is looking for further strong growth following the 34 per cent rise in pre-tax profit to €20.6 million (£16.2 million) in the six months to June 30th. The shares rose 70 cents to €23.70 following the publication of the results.

Growth is projected for its operations in both the Irish and British markets. "We continue to examine opportunities in the UK market and expect to benefit further from acquisitions and synergies" in the UK, said executive chairman, Mr Michael Chadwick. The strong regional positions of Buildbase and Plumbase ensured continued growth for UK merchanting businesses.

"In Ireland, we are well placed to benefit from strong brands and market leadership positions in a favourable construction market." Asked about e-commerce, he said the company was exploring the area. "As market leader with Woodies", he said it was the company's intention to maintain that lead.

The latest results show a rise in sales to €391.9 million from €285.1 million. Reflecting acquisitions of €53 million, and €17.6 million in capital expenditure, the gearing rose to 80 per cent from 54 per cent. However, interest cover is a comfortable 4.9 times. Also, since the end of June, it has agreed to sell a surplus site on 3.3 acres in London's Docklands for €24.9 million. When this is completed, the gearing will be reduced.

It purchased British Dredging for £33.9 million sterling (€55.44 million). After the sale of the site, and the subsequent sale of British Dredging's share of its dredging joint venture, the net cost to Grafton was only about £13 million which points to a shrewd acquisition. Reflecting real growth, earnings per share grew to 105.2 cents from 81.87 cents. Shareholders will receive an interim dividend of 24.7 cents, up from 18.7 cents. The interim results reflect the eight acquisitions made in the six months. These contributed €1.6 million to operating profit but the bulk of the growth came from core activities.

Both the operations in the Republic, and in Britain and Northern Ireland, enjoyed growth in sales and profits. Sales in the Republic grew by 17 per cent to €153.4 million while operating profits increased by 19 per cent to €15.1 million. Sales in Britain and Northern Ireland rose by 55 per cent to €238.5 million and operating profit went up by 72 per cent to €12.2 million. The profit margins in the Republic, at 9.8 per cent - up from 9.67 per cent and reflecting more manufacturing and a different product mix - are much better than the 5.1 per cent, up from 4.6 per cent, generated in Britain and Northern Ireland.

Irish merchanting and wholesaling sales grew by 15 per cent to €105.9 million. Chadwicks had a similar growth. Hire Centres "performed well", and Irish manufacturing sales grew by 19 per cent to €14 million. Woodies "strengthened its market leadership opposition with excellent turnover growth of 23 per cent to €33.5 million", Mr Chadwick said.