Building materials and DIY group Grafton says trading in the first six months of this year has been in line with market expectations.
In a trading statement, it says Heiton has performed ahead of last year's levels since being acquired in January.
Grafton says its Irish builders' merchanting business has become more significant for the group because of the Heiton buy and the strength of the Irish economy, adding that sales in this sector are showing high single-digit percentage growth.
But sales in the DIY sector - Woodie's and Atlantic Homecare - are down on last year when the effect of new stores is stripped out. Grafton says the opening of new stores by all the main players is making the Irish market increasingly competitive.
In the UK, its merchanting operations are showing slight growth in what Grafton called a 'softening market', with weaker retail spending leading to a fall in plumbers' merchanting sales. Grafton says its confident of further profits growth in 2005.
Shares in the company were down 18 cent to €9.00 in Dublin this evening.
