13th Jan 2017 07:19
LONDON (Alliance News) - Builders' merchant Grafton Group PLC on Friday reported strong revenue growth for 2016, driven by good trading in its UK and Ireland arms which offset a tougher period for its Belgian business.
Grafton said total revenue for the year to the end of December was GBP2.51 billion, up 13% on a reported basis and by 10% in constant currencies.
Revenue from its UK Merchanting business rose 6.6% in the year, driven by a strong performance for its Selco branches, while revenue in Ireland rose 27%, helped by the strong euro against the pound and a recovering construction market in the country. In constant currencies, Irish revenue increased 12%.
The Belgian Merchanting division, however, saw revenue rise 0.9% but decline 11% at constant exchange rates, hit by continued subdued demand in the country's construction industry, particularly for large projects.
Grafton's smaller Retailing arm, which includes the Woodie's DIY business in Ireland, reported 20% revenue growth and 12% constant currency sales growth, helped by a strong market backdrop and the weak pound against the euro. Its Manufacturing arm, housing its UK mortar-making unit, saw revenue rise 13% thanks to good demand from its housebuilder customer base.
"The group finished the year on a more positive note and saw the benefit during 2016 of its exposure to multiple markets," said Grafton Chief Executive Gavin Slark.
Grafton will publish full annual results on March 7.
By Sam Unsted; [email protected]; @SamUAtAlliance
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