Builders merchants Grafton said today its acquisition of Heitons has delivered profits ahead of expectations but that business in Britain is softening.
Posting its 14th consecutive set of record interim results, the owner of the Woodies DIY stores chain said sales in Ireland more than doubled due to the contribution from the Heiton businesses and high levels of construction activity.
Turnover in Ireland increased by 126 per cent to €500 million and operating profit was up 112 per cent to €43.5 million.
The British DIY market was more subdued reflecting the impact of higher interest rates and a slowdown in house prices. UK turnover was up 15 per cent to €793 million, and operating profit grew 8 per cent to €54.1 million.
Grafton said the outlook for the Irish economy is positive with low interest rates and a strong labour market supporting healthy consumer spending in the retail DIY business. Cost savings from the takeover of Heitons should add €9 million to earning s this year.
However in Britain the outlook is less rosy. The UK economy slowed in the first half following a decade of above average growth. Consumer spending has weakened after a series of interest rate rises that have dampened the property market.