Grafton, the Woodies DIY and builders' suppliers group, is reaping the benefits of a buoyant construction industry with a 28 per cent growth in pre-tax profit to £9.1 million in the first half of 1998. Strong growth was experienced in both its Irish and British operations.

Grafton, which recently succeeded in acquiring British publicly quoted company, British Dredging (BD), is poised to continue on the growth path.

In the first half sales grew by 32 per cent to £154 million, £6.7 million of which came from BD. Profit margins declined from 6.1 per cent to 5.9 per cent but that was after rationalisation costs of £500,000. Reflecting the takeover, interest costs rose from £634,000 to £1,504,000.

Earnings per share grew by 26 per cent from 37.7p to 47.6p. Shareholders are to receive a higher payout with a 24 per cent rise in the interim dividend to 10.5p.