Building materials and DIY group Grafton posted a 27 per cent rise in profits to €102 million for 2003 on sales of €1.5 billion as a number of acquisitions in Britain boosted turnover.
Grafton acquired a number of businesses in Britain, including Jackson Building Centres, which in total added 57 locations to the group's British merchanting network. British sales increased by 37 per cent to €1.1 billion, and operating profit increased by 46 per cent to €78.6 million.
In Ireland, the Chadwicks merchanting group and Woodies DIY stores reported strong growth and added more outlets. Irish turnover increased by 11.8 per cent to €384.5 million and operating profit increased by 16 per cent to €44.8 million.
The group said economic conditions in Britain are expected to continue to underpin demand in the repairs, maintenance and improvement sector while in Ireland the house-building boom of recent years is expected to moderate to a more sustainable pace.
Improved consumer sentiment and higher real disposable incomes should provide a favourable environment for Chadwicks and Woodie's, Grafton said.
Grafton will pay a final dividend of 6 cent per share giving a total dividend for 2003 of 10.5 cent. Grafton's board has also decided to redeem the remaining six redeemable shares per Grafton Unit for 5 cent per share payable on March 19th.
As a result the board does not expect to pay an interim dividend in 2004.