Building materials group Grafton has reported pre-tax profits of €106.4m for the first half of this year, up 18% on the same period last year. Total revenue grew by 13% to €1.6 billion and adjusted earnings per share rose by 18% to 39.1 cent.
Executive chairman Michael Chadwick said the results, which were brought forward because of uncertainty in the stock markets, showed a strong performance in the UK and solid profit growth in Ireland.
He said the Irish economy provided a 'solid' trading background in the first half, adding that Grafton was 'well placed to respond to changing market conditions'.
The company said the outlook for both its markets remained favourable, though growth would ease in Ireland and recent interest rate rises may affect UK demand. It said sales and profits had grown in July, but at a lower rate than in the first half.
Grafton said the early release of results would also allow the company the flexibility to buy back some of its own shares.
A breakdown of the results showed that UK profits increased by 28% to €63.8m on 17% higher sales of €979.4m, while Irish profits rose by a more modest 6% to €60.6m on 6% higher turnover of €628.8m.
Grafton said a recovery in UK consumer spending which began in the second half of last year was sustained in the first half.
The company said the Irish economy continued to grow strongly in the period, though there was a moderation in new house building. It said repair, maintenance and improvement (RMI) spending was strong, supported by the strong economy and maturing SSIA money.
Irish merchanting sales were up 4% to €424.2m, while DIY sales at Woodie's and Atlantic Homecare rose by 14.4% to €168.2m.
The company is paying out 10 cent per share to shareholders, up 21% compared with last year.
Grafton shares closed up 49 cent at €9.99 in Dublin this evening.
