Builders merchanting and DIY group Grafton has announced a 6.3% increase in group revenue in its preliminary results for 2015 and said it was expecting operating profit of up to £127m.
Revenue for the year came in at £2.2 billion, the company said in a trading statement.
Grafton said that its merchanting operations - which accounts for over 90% of group revenue - performed strongly, particularly in the Irish market.
It noted that low interest rates, growth in house prices and a resurgence in consumer confidence among Irish shoppers gave rise to increased activity in the building and home improvement market.
Irish merchanting revenues rose by 10.9% in the year to the end of December - on a constant currency basis - but dipped 0.1% when converted to sterling.
UK merchanting revenues rose by 8.9% amid competitive market conditions, especially within the plumbing and heating market.
But merchanting revenues fell by 9.7% in Belgium - when converted to sterling - as the economy there weakened and confidence fell as the year progressed.
In its retailing operations, Grafton said that an increase in employment and disposable income - along with strong consumer confidence - supported the recovery in retail spending which broadened into the DIY sector in the second half of the year.
It said that the pick-up in demand and promotional activity contributed to strong second half growth in its Woodie's DIY business.
"2015 was a year of significant development activity for the group with the continued expansion of the Selco branch network, bolt-on acquisitions in the UK merchanting market and the purchase of Isero which now gives the group a presence for the first time in the Netherlands market," commented Grafton's CEO Gavin Slark.
