Grafton Group reports 6.6% revenue rise in first half of 2015

DIY and building group Grafton has posted a 6.6 per cent increase in revenue to £1.08 billion in the first half of 2015, compared to £1.015 billion a year earlier.

The company, which operates the Woodie’s DIY chain across Ireland, also has operations in the UK and Belgium, reported it benefited from growth in average daily like-for-like revenue, although markets remained competitive.

Increased revenue led to better performance for Selco Builders Warehouse, according to the company. Two new branches of the trade building materials merchant opened in the first six months of 2015, with more openings planned later this year and in 2016.

Grafton benefitted from higher trading volumes in the traditional builders merchanting business, but that was partially offset by a lower gross margin due to competition and mix changes.

It said the performance of Plumbase was impacted by flat revenue and weaker pricing in a plumbing and heating market that continued to experience challenging trading conditions.

The Irish merchanting business continued to perform ahead of improving trends, the company said, as strong growth in the residential repair, maintenance and improvement (RMI) market was complemented by a modest recovery in housebuilding from low levels and increased activity in the non-residential and infrastructure markets.

It said the DIY business in Ireland experienced modest revenue growth.

"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.

Grafton will announce interim results for the first half of 2015 on August 27th.