12th Jan 2016 07:54
LONDON (Alliance News) - Builders' merchant and DIY firm Grafton Group PLC on Tuesday said 2015 revenue grew in line with its expectations, though it flagged an anticipated slowdown in the fourth quarter.
The FTSE 250-listed group said its revenue for the year to the end of December was GBP2.21 billion, up from GBP2.08 billion a year earlier. That growth, of 6.3%, did slow in the fourth quarter, however, to 4.6%, as the group contended with a slowdown in the repair, maintenance and improvement market in the UK.
The weaker market meant revenue growth in the UK slowed to 3.9% in the fourth quarter, compared to 8.9% for the full year. Ireland, on the other hand, continued to improve in the fourth quarter, with revenue growth at 10%, though this was down 0.1% for the full year due to the hit taken from the weak euro.
The improvement in Ireland also helped produce better conditions for the group's DIY business, with revenue up 4.4% in the fourth quarter, helping to ease the 6.2% decline for the full year.
"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," said Gavin Slark, Grafton's chief executive.
Slark added Grafton expects its operating profit for 2015 to meet its expectations.
By Sam Unsted; [email protected]; @SamUAtAlliance
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