Building materials group Grafton has reported pre-tax profits of €25.6m for the year ending December - an 88% jump from the €13.6m the year before.
Revenues for the year rose by 1% to €2 billion from €1.98 billion and the company said it expects further improvements in profits as markets recover.
Grafton said its second interim dividend has been increased to 4.5 cent. This will result in a total dividend for the year of seven cent, an increase of 40% in 2009.
The group's executive chairman, Michael Chadwick, said the UK economy appears to be in a modest growth phase. He said that activity in its sector has recovered from historically low levels.
'The outlook for Ireland remains unpredictable,' he added, however.
Grafton said that turnover in its merchanting business rose by 2.6% to €1.73 billion. The division's profit before restructuring costs increased by 57% to €61.5m.
The company said its UK merchanting branches increased turnover by 6.5% to €1.4 billion. Trading was hit by the severe weather conditions in January 2010 before growth resumed and average daily like for like sales rose by 4% in the months from February to June.
This positive trend was also seen in the second half of 2010, though trading in December was again affected by the severe weather conditions.
Turnover in Grafton's Irish merchanting business fell by 11.5% to €327.8m. However the company said that despite the fall, the business traded at close to breakeven in the first half of the year and returned to profitability in the second half of the year. The division's operating profits before restructuring amounted to €3.7m, a marked turnaround from the €10.3m loss reported in 2009.
The company said the improved performance was due to the benefits of the ongoing restructuring and cost cutting measures adopted last year.
Retailing revenues down 7%
Grafton said that turnover in its retailing business fell by 7% to €230.5m from €247.8m but Woodies managed to retain its number one spot in the Irish DIY market. Operating profits fell to €2.4m from €3.3m.
The company said that the business remained resilient despite the challenging trading conditions in the Irish retail market.
Turnover at its manufacturing business fell by 4% to €43.3m while the operating loss before restructuring charges narrowed to €3.5m from €5.1m. The Irish end of the business experienced further demand weakness.
'Group turnover for the first two months of 2011 is encouraging with a continuation of like for like sales growth in the UK and signs of further stabilisation in Irish turnover,' commented Mr Chadwick.
'The group's strong financial position, lower cost base and opportunities for restructuring leave it well placed to benefit from improvements in it markets. Further improvement in profit is expected as markets recover,' he added.
Grafton shares closed down 5.1% at €3.62 in Dublin.
