Building materials group Grafton Group has reported a 35% jump in pre-tax profits for the six months to the end of June. Pre-tax profits rose from €87.4m to €118.3m, on revenues of €1.43 billion, up 10% on the same time last year.
Adjusted earnings per share increased by 9% to 33 cent in the six months.
Grafton said this was the 15th set of record interim results in a row as the Irish economy provided a very favourable trading environment for the group's Irish merchanting and DIY businesses.
In a buoyant market, Irish turnover rose by 18% to €590.7m and operating profits rose by 31% to €57.1m. Grafton's UK business increased sales by 5.4% to €836.5m but operating profit was lower at €49.8m as operating margins reduced.
Grafton said it expected Irish construction activity to grow by 6% this year. Sales at its Irish merchanting business grew by 21% to €407.6m, while turnover at its DIY chains Woodie's and Atlantic Homecare was up 15% to €147m, but this was mainly due to new stores. Underlying sales were flat, mainly because of increased competition.
Grafton says it remains confident of continuing growth in profits and earnings per share in 2006. It says that with a very strong financial position and healthy cash flow, it is well placed to take advantage of suitable development opportunities and a healthy pipeline of potential acquisitions.
Shares in Grafton closed down 44 cent at €10.41 in Dublin.
