27th Aug 2015 06:50
LONDON (Alliance News) - Builders' merchant and DIY company Grafton Group PLC on Thursday reported a big rise in pretax profit for the first half to the end of June, as the group's revenue was pushed higher by improving conditions in its key markets.
The FTSE 250 group said its pretax profit for the first half was GBP57.9 million, up from GBP45.9 million a year earlier, as revenue increased to GBP1.08 billion from GBP1.02 billion a year earlier.
Revenue was driven higher by a good performance in Grafton's UK merchanting business, which benefited from an improving economic backdrop and increased activity in the residential repair, maintenance and improvement and new build markets. Its Selco business traded well in the half, while the group also saw a significant contribution made by acquisitions it made in the UK and new branch opening.
The company also made progress in its Irish operations, with profit growing in its merchanting business as the country's economy recovers.
On the back of the robust results, Grafton hiked its interim dividend by 20% to 4.50 pence per share, up from 3.75 pence.
"The first half of 2015 has seen the group deliver a strong performance across key financial metrics as it continues to execute its strategic plans. The overall outlook for Grafton is positive and despite current challenges the group is well placed to make further progress in the second half towards delivery of its medium term targets of a 7 per cent operating margin and 15 per cent return on capital employed," said Chief Executive Gavin Slark.
By Sam Unsted; [email protected]; @SamUAtAlliance
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