13th Nov 2014 07:57
LONDON (Alliance News) - Grafton Group PLC Thursday said its sales growth had moderated in the last four months after a very strong first half of 2014, but it said the outlook remains positive and it's expecting to report a full-year operating profit in line with its expectations.
The builders merchanting and DIY group, which has operations in the UK, Ireland and Belgium, said revenue in the ten months to October 31 was GBP1.76 billion, up 10.1% from GBP1.60 billion a year earlier, but its average daily like-for-like revenue growth at constant currencies slowed to 6.1% in the four months to the end of October, from 7.5% growth in the second quarter and 10.3% growth in the first quarter.
It said average daily like-for-like revenue growth at constant currencies in its merchanting business, which makes up 90% of its total revenue, grew 5.4% in the UK in the four months to end-October, compared with 6.8% growth in the second quarter and 9.8% growth in the first quarter.
Ireland merchanting growth was up 15.4% in the last four months, but that was a slowdown from 18.6% growth in the second quarter. Its Belgian business meanwhile reported a 10.8% fall in daily like-for-like revenue growth, a slight improvement from the 11.7% decline it reported for the second quarter.
"As anticipated, the growth in the UK market continues to moderate from the first half and the Irish Merchanting business is showing a marked improvement from a very low base. The overall outlook continues to be positive and the group remains on course to report full year operating profit in line with its expectations," Chief Executive Gavin Slark said in a statement.
It said the growth in sales was still being driven by increased demand in the residential repair, maintenance and improvement markets in the UK and Ireland.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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