9th Jul 2015 06:59
LONDON (Alliance News) - Grafton Group PLC on Thursday said its revenue in the first half increased on the back of good performances in its UK merchanting and manufacturing businesses, even as its operations in Europe were dragged back by the weak euro.
The FTSE 250-listed builders merchant and DIY company said its group revenue in the six months to the end of June was up by 6.6% to GBP1.08 billion, though it increased by 9.5% in constant currencies.
The group's UK merchanting business saw revenue increase by 9.6% in the half, while its Irish merchanting arm posted a 2.1% rise but would have increased by 15% in constant currencies. The bite the weak euro has taken out of Grafton revenue is illustrated by revenue in its Belgian merchanting business, where sales were down by 4.4% but rose by 7.2% in constant currencies.
A similar drag was shown in its DIY retailing business, where revenue fell by 9.3% but was up by 2% in constant currencies.
The only other growth came in its manufacturing business, where the currency translation hit was minimal in comparison to other divisions, with revenue rising by 14.2%, or 15.1% in constant currencies.
"The fundamental strengths of the group's strong brands and market positions together with the operational improvements made in recent years give us confidence that, despite current challenges, we can deliver the group's medium term targets outlined earlier this year," said Chief Executive Gavin Slark.
By Sam Unsted; [email protected]; @SamUAtAlliance
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