Recovery boosts revenue at Grafton Group in 2017

Total revenue at Grafton Group rose almost 7 per cent last year as its merchanting business surged in Ireland and the Netherlands.

The builders merchanting and DIY group said total revenue at its Irish merchanting division rose 9 per cent on a constant currency basis, as the construction market and economy remained favourable. Demand was driven by growth in the residential market, Grafton said, along with recovery in house building. The firm said it expects that recovery to gain momentum in the current year.

Meanwhile, a broadly based economic recovery in the Netherlands supported the housing and non-residential construction markets, leading to a 39.7 per cent increase in merchanting total revenue for Grafton in that region. It said the group’s specialist merchanting business found good demand in the tools, ironmongery and fixings market.

In the retail sector, Woodies saw a bump in business from the strong economy, trading strongly throughout the year. Retail accounts for only 6 per cent of Grafton’s total business. Total revenue rose 7.4 per cent over the year on a constant currency basis.

Inside Business podcast: Why docklands apartments are so expensive

---

Building higher could cut prices by 20%, says Cairn chief

---

Deutsche Bank begins coverage of Green Reit with ‘buy’ rating

---

Trump tax cut may net CRH additional €140m on US deal

---

Manufacturing makes up the remaining 2 per cent of the business’s revenue.

Chief executive Gavin Slark said Grafton was pleased with the progress made across the group during the year. "We enter the new year in a favourable positon well placed to implement our growth strategy supported by good cash flow from operations, a strong balance sheet and low net debt," he said.