Building materials group, Heiton Holdings, is looking for further strong growth following a 20 per cent rise in pre-tax profit from €16.3 million to €19.6 million in the year ended April 20th 2000. The market liked the results which were in line with projections and the shares rose 35 cents to €3.25 cents.

Heiton said the prospects for its key markets were encouraging, particularly in the booming Irish economy. In Britain, the south east was improving although national spending on infrastructure was sluggish and was holding back growth in Heiton's divisions on the north west.

Sales for the first two months are ahead and the group will have a full 12 months contribution from the recently acquired Dublin-based Panelling Centre. This, said chief executive Mr Leo Martin, will add 1p to earnings per share. A further small contribution will come from the bolt-on acquisition of Tullamore Hardware for up to €2.5 million which the company announced with the results yesterday. "We continue to maximise shareholder returns through our pursuit of appropriate acquisitions which have contributed to our performance," he said. "We will build on this position by identifying further acquisitions in Ireland, the UK and Poland."

The Polish market, according to Mr Martin, will provide a further platform for growth. He envisages the first of a number of joint ventures, costing between £1 million and £2 million before the end of the year. Entrepreneurial companies starved of capital will be targeted and the plan will be to build up the stake to 100 per cent within a three-year period.

Another development will be the arrival of its Atlantic Homecare DIY online by the end of the year. Initially 3,000 of its 15,000 to 17,000 product line will be offered. This, he added, will be "convenience driven".

The latest figures are broadly in line with brokers' predictions. Turnover rose by 21.5 per cent to €319.0 million while adjusted earnings per share grew by 27.2 per cent to 33.5 cents.

Shareholders are to benefit from the higher profits; a final dividend of 35.25 cents has been declared, bringing the total to 10.0 cents, a 30 per cent increase on the previous year.

All of Heiton's divisions, except steel, recorded growth in sales. Steel had a contraction from €25.5 million to €23.7 million. This was due to the closure of the Portarlington facility and a surplus of international supplies. However, margins were increased.

The homecare DIY division increased its sales by 29 per cent to €31.3 million. The underlying growth was 11.5 per cent and its market share has risen to some 28 per cent. The Irish builders merchants saw an 11 per cent growth to €189.6 million and better margins. Sam Hire had a 28.3 per cent growth in sales to €11.9 million.

The group's businesses in the UK recorded an 87.2 per cent increase in sales to €61.4 million. Here it was a year of "concentration on organisational and management change for Cooper Clarke, our UK specialist drainage products business", the preliminary statement said.