Builders’ merchant and DIY retailer Grafton Group has reported double-digit growth in both revenue and profit over the first half of the year, despite what it calls uncertain and competitive market conditions in its largest market, the UK.
Grafton's revenue rose 12% to £1.2 billion (€1.4 billion) and pre-tax profit was also up 12% to £65m (€76m).
Grafton’s growth was broadly split between existing business and acquisitions, with strong contributions from Ireland as well as the recent acquisition of Isero in the Netherlands and Selco in the UK.
The firm said it is investing in an ongoing basis in a store opening programme for Selco, which should see a 50% increase in store numbers by the middle of next year.
It also spent £40.1m on acquisitions and capital expenditure between January and June.
The Irish company reports in sterling and is quoted on the London Stock Exchange.
Cash generation in H1 was £108m, compared with £73.2m for the same period last year.
Grafton’s net debt fell by £17.9m to £95.7m, resulting in gearing of 9%.
The company’s CEO Gavin Slark said: “Both Ireland and the Netherlands continue to show strong growth with ongoing development opportunities.
“Grafton will continue to invest in areas of its business which combine good long term growth prospects and the opportunity to improve the group's operating margin and return on capital employed."
