Building materials group Grafton says that group turnover for 2005 exceeded €2.6 billion and group earnings are expected to be in line with market expectations. But this morning's trading statement shows two contrasting stories between its Irish and UK operations.
Grafton says it benefited from a continuation of a favourable environment in Ireland, which compensated for weaker trading conditions in the UK during the second half of the year.
Grafton says that Heiton Group, which it bought last January, performed ahead of expectations and contributed significantly to group profitability.
The company says it remains positive in its outlook for the UK market, but adds that it expects difficult conditions to continue in that market during the first half of 2006. But following a recent marked improvement in UK macro economic indicators, the prospects for the second half of 2006 are more favourable.
In Ireland, Grafton says it expects to benefit from a continuation of buoyant trading conditions and good like for like merchanting sales growth throughout 2006.
In the year to December 2005, Grafton says it completed 17 acquisitions - 14 in the UK and three and Ireland - for a total of about 470m. These added 89 branches and increased the group's branch network to over 480 trading locations.
Further organic growth is planned for 2006 with the development of additional greenfield locations, the completion of the ninth dry mortar plant in the UK and further DIY store openings in Ireland.
'The Group also expects to benefit from its healthy pipeline of potential acquisitions,' the trading statement concludes.
Shares in Grafton closed down 15 cent to €9.20 in Dublin this evening.
