UK acquisition drives growth at Grafton

Building materials group Grafton announced a 32 per cent rise in interim profits today as sales soared as a result of acquisition…

Building materials group Grafton announced a 32 per cent rise in interim profits today as sales soared as a result of acquisition in Britain.

Grafton also cheered investors with an upbeat outlook that predicted full-year profits would be ahead of last year.

Overall sales at the group - which owns the Woodie's DIY chain in Ireland - said sales for the six months of 2003 were up 32 per cent to €706.5 million.

In Ireland turnover rose 12 per cent to €184 million with operating profit increasing by 19 per cent to €17.8 million thanks to strong housing activity.

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Grafton said the Irish retail environment showed only modest volume growth in the half year; nonetheless, Woodie's DIY increased sales by 16 per cent including strong like-for-like growth of 6 per cent.

In Britain, the group's most important market, turnover grew by 41 per cent to €523 million. The acquisition of the Jackson's DIY chain in March strengthened Grafton's position as Britain's fourth-largest merchant with a market share of some 8 per cent.

In addition to Jackson's, Grafton acquired three single-branch businesses during the half year and opened seven greenfield branches in Britain.