STRONG growth in Irish and US markets and improvements in Spain and the Netherlands led to a 38 per cent jump in pre-tax profits at CRH last year.

Profits of £160.5 million at the building materials group were just ahead of market expectations. They were enhanced by strong growth from existing operations as well as contributions from acquisitions. Existing operations contributed £26 million of the £44 million rise in pre-tax profits, while acquisitions made in 1994 and 1995 contributed £18 million.

The US accounted for just over a third of group trading profits with Ireland and mainland Europe contributing 28 per cent each. But the contribution from Britain and Northern Ireland fell to 9.9 per cent from 14.9 per cent in 1994.

Earnings per share rose 35 per cent to 35.55p. Shareholders are to get a 13 per cent increase in the final dividend to 6.35p per share bringing the total dividend for the year to 9.10p per share, an increase of 12 per cent on the 1994 payment.

Despite spending £215 million on capital investment and acquisitions in 1995, CRH's strong cash flow meant that net debt at year end was only £19.1 million higher at £150.6 million. Its debt ratio was unchanged at 21 per cent.

Group turnover increased by 18 per cent to £1,911 million while operating profits rose by 40 per cent to £169.5 million. After a £3 million fall in income from interests in associate companies and financing costs of £18.9 million (up from £18 million), pretax profits increased to £160.5 million.

Profits after tax were 35 per cent higher at £127.5 million after an increase in the effective tax rate from 18.7 per cent to 20.5 per cent due to a change in the profits mix.

Turnover in the Republic rose by 10 per cent to £278.2 million.

But reflecting the strong growth in the US, the Irish operations contribution to turnover fell to 14.6 per cent of group turnover from 15.7 per cent. The contribution to group profits fell to 28.2 per cent from 30.1 per cent.

Trading profits from Irish operations increased by 31 per cent to £48.1 million boosted by a strong housing market, strong private sector investment in urban renewal projects and building in the agricultural sector. Overall margins increased to 17.3 per cent from 14.6 per cent.

But road construction was appointing", which produced difficulties for the John A Wood subsidiary. Production constraints affected magnesia subsidiary Premier Periclase where profits were unchanged despite stronger magnesia prices.

Domestic cement sales increased by 10 per cent but sales into Northern Ireland fell in the second half, resulting in a 5 per cent decline over the year in that market.

In difficult markets, turnover in Britain and Northern Ireland was flat at £384 million while trading profits fell 6.7 per cent to £17 million. Margins slipped to 4.4 per cent from 4.7 per cent. These operations only accounted for 9.9 per cent of group trading profits in 1995, down from 14.9 per cent in 1994. Against poor market conditions builders merchants Keyline and the TBF Thompson Group reported increased profits.

In mainland Europe turnover rose 16.5 per cent to £651.5 million with a 41 per cent jump in trading profits to £47 million. Margins improved to 7 per cent from 6.2 per cent. Results were boosted by improvements in Spain and the Heras fencing operation in the Netherlands.

Organic growth at Van Neerbos was boosted by contributions from add on acquisitions and "greenfield" investments during the year. CRH reported strong sales in the Dutch and German, markets. But the group's smaller joint venture operations in Germany reported mixed fortunes.

Mainland Europe accounted for 34.1 per cent of group turnover in 1995, down from 34.7 per cent in 1994, but it contributed 27.6 per cent of group profits compared with 27.3 per cent.

But the US market accounted for the biggest jump in profits with an increase of 72 per cent to £58.4 million.

Profit growth was boosted by acquisitions and the US accounted for 34.3 per cent of group trading profits in 1995 compared with 27.7 per cent in 1994. Margins improved to 9.8 per cent from 8.1 per cent.

Turnover rose by 43 per cent to £416.7 million. The US contributed 31.2 per cent of group turnover, up from 25.8 per cent. Growth came mainly from non residential construction. Profits increased at the Precast Group, the Architectural Products group, Pennsy and the Glass Group, which included the consolidation of HGR But performance was mixed at the Materials Group where Pike and Balf had difficult years.