Grafton Group has reported a 9% rise in revenue for the six months to the end of June as its pre-tax profits rose by 16%.
The building supply company, which includes brands like Woodies and Heiton Buckley, made £75.4m in the six month period, on the back of almost £1.34 billion in revenue.
Grafton saw gains at both its DIY and merchanting businesses in Ireland as improving economic conditions, a recovery in house building and upgrades to its stores brought more customers in.
Its branch network was also expanded with the opening of three new branches in Dublin.
The company said its interim dividend has been increased by 11% to 5.25 pence from 4.75 pence.
"Strong earnings growth has provided scope for a significant increase in the dividend while also increasing dividend cover," the company stated.
Looking ahead, Grafton said that recent softer trends in the UK economy are likely to be sustained over the remainder of the year.
"The strength of housing starts should support house building activity while the residential RMI market is expected to be broadly flat with continuing competitive pricing conditions," the company stated.
But it added that the outlook for the Irish economy is positive with the pace of growth projected to remain strong and to provide a favourable trading environment.
"The new housing and non-residential new build markets are still in the relatively early stages of a recovery that is expected to gather pace in response to strong underlying demand," the company said.
It also said that recent strong growth in the Dutch economy is forecast to continue with the merchanting business expected to benefit. Modest growth is also forecast for the Belgian economy.
"We are pleased to report that all geographies contributed to strong growth in revenue and double digit growth in profit and earnings per share in the first half," commented Grafton's chief executive Gavin Slark.
"This encouraging outcome leaves us well placed to deliver our full year expectations," the CEO added.
Breaking down its divisions, Grafton said that revenues in its Merchanting division rose by 8.6% to £1.221 billion while adjusted operating profits were up 13.4% to £74.6m. The division makes up 91% of total group revenue.
Revenue in Grafton's Irish merchanting business jumped by 21.9% to £193m in the six month period, while operating profits soared 54% to £16.5m as the division outperformed a recovering market.
Meanwhile revenues at its Retail division - which makes up 6% of group revenue - rose by 15.5% to £84.4m while operating profits increased by 53% to £4.7m. DIY chain Woodies saw its like for like revenue rise by 6.6%.
