Building materials group Grafton has reported pre-tax profits of €15.1m for the first six months of this year, up 13% from a year earlier.
Revenue was up 3% to just over €1 billion and a 10% higher interim dividend of 2.75 cent is to be paid. Operating profits, excluding once-off costs, were up 40% to €26.2m.
Grafton Shares rose after the announcement, closing up 1.7% at €2.75 a share.
CEO Gavin Stark said the group was well-placed to deal with continued difficult conditions in its main UK and Irish markets.
Grafton said profits in its UK builders merchants business, before restructuring costs, rose by 14% to €31.9m, on 5% higher turnover of €712.7m. It said this came against a background of weakening consumer confidence in the UK.
Turnover in the Irish merchanting business fell 7.2% to €149.4m, though it returned to profit, with a €1m profit before restructuring costs. Grafton said the improvement was mainly due to cost cuts.
In the retail business, turnover fell 4.6% to €112.1m, but Grafton said this was mainly due to weather-affected seasonal ranges such as garden furniture and barbecues. Losses narrowed from €1.2m to €400,000. Losses in manufacturing also narrowed to €900,000 on 6.5% higher turnover of €23.1m.
Grafton said pressure on disposable incomes in the UK would continue to affect consumer confidence, though there was some evidence of stabilisation in the Irish economy, though a recovery would take some time. In July and August, there was underlying sales growth of 2.5% in the UK but a fall of 5.8% in Ireland compared with the same months last year.
