Heiton Holdings, the builders' merchants and DIY group, yesterday announced record interim profits, and said it was on the acquisition trail in Ireland, Britain and Poland. The company said its business was likely to receive a boost from the Government's £52 billion (€66 billion) National Development Plan.
Its turnover for the six months to the end of October rose by 31 per cent to €162 million (£128 million) compared to the same period a year earlier, while pre-tax profits climbed more than 27 per cent to €10.2 million (£8 million). Heiton added that operating profit was €11.6 million (£9 million), up almost 32 per cent.
Investors will benefit from an interim dividend of 4.75 cents per share, an increase of 25 per cent on the previous year's half-year pay-out, and almost equal to the entire dividend for 1997, the firm said.
"All divisions contributed strongly and a significantly reduced tax charge is also reflected in this out-turn," the company said. "The earnings growth achieved by the group has once again surpassed the underlying growth in the construction sector over the period."
Heiton said "shareholder value" continued to represent the cornerstone of group strategy. Chief executive Mr Leo Martin carried out a strategic review during the year, strengthening the board and management team with new appointments, the company added.
The company is planning a series of marketing initiatives, an electronic commerce strategy and profit-sharing for some staff. It is set to open another branch of Atlantic Homecare in Dublin's western suburbs soon, with two more planned for 2001.
"The group continues to focus on organic growth of its existing operations whilst actively pursuing suitable acquisition opportunities," the company said.
Mr Martin said the company was considering purchases in Ireland, Britain and Poland: "We have a team on the ground in Poland, and it has looked at a number of opportunities, but it is important to find the right investment. It remains very much a medium-term objective for us."
He said the core market in the Republic continued to be spurred by the ongoing economic boom, with the construction industry projected to grow this year by up to 10 per cent.
Pointing to the Government's National Development Plan - which will further boost the construction sector - Mr Martin commented: "Ireland remains an exciting environment for the Heiton businesses."
Executives said they could offer no comment on the apparent desire of Grafton to build its stake in Heiton. Grafton now controls 14.6 per cent of its rival.
