GRAFTON Group's shares jumped by 35p yesterday to an all time high of 660p, following the announcement of substantial profit growth in the first half. Some £5.5 million was added to the stock market value of the Woodies DIY group.
Interim results showed a 74 per cent rise in pre tax profit from £3,819,000 to £6,627,00 in the six months ended June 30th, 1996.
A further upsurge is expected for the second six months as it continues to benefit from buoyant activity in the construction industry. Graft on looks set to generate profits of at least £15.5 million in 1996, which would represent a growth of 36 per cent.
Shareholders are to benefit from this growth. The interim dividend is being raised from 5.0p net per share to 6.5p.
Irish merchandising sales increased by 15 per cent to £46.4 million. Chadwicks, the builders providers side, grew at a faster rate than the market and thereby increased its market share. Irish manufacturing sales went up by 15 per cent.
Operating profit was down from £834,000 to £603,000. This decline was due to weak market conditions in Northern Ireland and rationalisation costs associated with acquisitions.
Grafton further strengthened its financial position. The gearing has fallen from 23 per cent to 10 per cent.
Although the group is continuing to look for acquisitions in both Ireland and Britain there are no imminent acquisitions, said chairman, Mr Michael Chadwick
The shares at 660p are on a prospective price/earnings ratio of 7.8, assuming earnings per share rise from 57.3p to 85p.
