PROFITS at the Woodies DIY company, Grafton Group, are running "encouragingly ahead of budget" in the first quarter of the year, its executive chairman, Mr Michael Chadwick, said.
Speaking to shareholders at the annual general meeting in Dublin yesterday, Mr Chadwick said that "in the absence of unforeseen circumstances" group profits for the first half of the year will be ahead of last year's level.
With strong growth in the house and building market in Ireland set to continue, he predicted the group would perform in line with broker's expectations. He said he was "comfortable" with forecasts saying Grafton would make profits of between £11 million and £12 million this year.
Graft on has opened two new stores in Dublin in the past six months and plans to expand its network. According to Mr Chadwick, the group's expansion plans are now firmly focused on increasing the number of its DIY outlets outside Dublin. The city's market, he said, was "saturated" and the group would not open any additional shops there.
Its operations in Britain, which accounted for just over 10 per cent of the group's sales, were performing as expected, Mr Chadwick said. All its outlets in that market, he said, were "poised to improve" as the recovery in the British construction industry gained momentum.
The Graft on Group reported a 38 percent rise in profits in 1995, to £10.99 million. Its divisions in Ireland and Britain recorded strong growth in turnover and profits.
