Grafton Group revenues rise 8% to £1.9bn

Builders merchanting and DIY group Grafton said revenues rose 8 per cent last year, as trading conditions continued to improve in the UK and Ireland.

Group revenue for the twelve months to December 31st was £1.9 billion (€2.3 billion), an increase of 8 per cent from £1.76 billion recorded in 2012.

The company’s underlying operating profit climbed 27 per cent to £77.2 million from £61 million in 2012.

Grafton said the highlight of the results was the performance of the merchanting business in the UK which increased operating profit by 19.8 per cent to £75.9 million, compared to £63.4 million in 2012.

The defined benefit pension schemes in the UK and Ireland were restructured to provide for more sustainable future benefits at an affordable cost resulting in a once-off credit of £30 million

Grafton chief executive Gavin Slark said the group's recovery was making good progress in markets that are still challenging.

“We are maintaining the disciplined approach to costs and margins demonstrated by these results. Trading in the current year has been encouraging and, while we expect recovery in our markets to be gradual, the group is confident of building on its strong 2013 performance in 2014.”

Grafton said its second interim dividend rose by 22 per cent to 5.5 pence from 4.5 pence. This gives a total dividend for the year of 8.5 pence, up 21 per cent from the seven pence paid out in 2012.