DUBLIN: Builders’ merchant and DIY group Grafton has reported profit before tax that was up 56 per cent to £101.2 million (€141 million) for the year ended December 2014.
Revenues was up 9.6 per cent to £2.1 billion (€2.9 billion) from £1.9 billion ( €2.65 billon) 12 months earlier while operating profit rose 43 per cent to £110.1 million from £77.2 million.
he company, which operates the Woodie’s chain across Ireland, and also has operations in the UK and Belgium, reported significant profit growth in its Irish merchanting business as the market recovery here accelerated. It said its DIY business in Ireland also showed improvement although revenue was flat.
Irish Merchanting revenue rose by 6.0 per cent to £257.5 million over the year. The increase in constant currency was 11.7 per cent. Operating profit increased by 217 per cent to £16.4 million and by 234 per cent to €20.4 million in constant currency. The operating profit margin increased by 4.3 percentage points to 6.4 per cent.
Gratfon said its UK merchanting business, which generated 73 per cent of group revenue, recorded strong growth driven by growth in the housing repair, maintenance and improvement and new-build markets. UK merchanting revenue increased by 9.5 per cent over the year to £1.53 billion while operating profit grew by 22.2 per cent to £92.8 million.
“2014 was a year of significant progress for Grafton which recorded its fifth successive year of strong profit growth and met the Board’s ‘first base’ financial targets of an operating profit margin exceeding 5 per cent and a double digit return on capital employed. Given that 2014 was also the first full year of recovery in its major businesses, the overall outlook for the Group is positive,” said Gavin Slark, chief executive.
