Grafton reports 32% rise in half-year profits

Irish building materials group Grafton today reported a 32 per cent increase in pre tax profits to € 27

Irish building materials group Grafton today reported a 32 per cent increase in pre tax profits to € 27.1 million, for the six months to June 30th.

Commenting on the results, Mr Michael Chadwick, executive chairman said the group’s British operations now account for 65 per cent of turnover and 49 per cent of operating profit.

Mr Chadwick said the company expects to see further growth in the second half of the year in the British and Irish markets.

The company said the Irish construction sector was slowing with residential completions growing by only 3.4 per cent in the first quarter. But the slowdown was offset by buoyant growth in the DIY market which moved ahead by 8 per cent to euro 166.4 million.

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The group’s chain of DIY stores Woodie's DIY grew turnover by 24 per cent to euro 41.5 million, with strong like-for-like sales growth of 17 per cent. Operating profit grew significantly and margins were further improved.

The two new stores which opened in Athlone and Bray in 2000 performed well, and contributed to Woodie's strong profit growth the company said.

Woodie's online shopping site www.woodiesdiy.comwas launched in March and is performing "as expected" the company said. Woodie's expansion plans include the opening of new stores in Tralee and Newbridge.