Mr Peter Byers, finance director, said the company had resources of up to £10 million to fund acquisitions "without going to the markets". Heiton would be "happy enough" to go to £30 million.
Mr Hewat added that earnings per share had risen by 27 per cent, from 6.47p to 8.22p, and the group had joined the "club" of companies which had achieved a market capitalisation of more than £100 million when its share price went beyond 215p. The interim dividend has been raised to 2.10p, 0.45p up from last year.
Further growth and profit increases were achieved by Heiton Holdings, the builders merchants and DIY group, over the six months to October 31st which saw an expansion into the plant hire business with the acquisition of Sam Hire and Leeway Properties.
Pre-tax profits rose by 23 per cent from £4.65 million to £5.7 million on the same period in 1996 and group turnover increased by 17 per cent, from £71.8 million to £84.2 million.
The chairman, Mr Stephen O'Connor, said that Heiton was in a better position from a financial and human resources point of view "for delivering good results in the future".
The group has seen continual expansion since 1992 and raised the equivalent of £16.6 million in the US in November from the first private placing of senior loan notes.
Mr Richard Hewat, managing director, said that an overseas expansion programme would be an option in the future, adding that growth in Ireland was limited by the economy's size.
Research into merchanting and tool hire in the British market was being carried out. "We see expansion in Europe as a medium-term objective," Mr Hewat said.
Mr Peter Byers, finance director, said the company had resources of up to £10 million to fund acquisitions "without going to the markets". Heiton would be "happy enough" to go to £30 million.
Mr Hewat added that earnings per share had risen by 27 per cent, from 6.47p to 8.22p, and the group had joined the "club" of companies which had achieved a market capitalisation of more than £100 million when its share price went beyond 215p. The interim dividend has been raised to 2.10p, 0.45p up from last year.
Yesterday, the share price rose 8p to 230p in the wake of the positive results.
"We were the No 3 performer in the Irish stock exchange excluding the three companies in the resource sector.
"Perhaps a slight cloud is the importers' currency-driven inflation which may occur with the sudden drop in the exchange rates with sterling," he said.
The company reported increased margins in its Atlantic Homecare DIY chain, with turnover growth of 12 per cent, from £7.5 million to £8.4 million, following a capital investment programme and new product lines in lighting and furniture. "We achieved market share growth in all the acquisitions," he added.
The managing director of Atlantic, Mr Pat McGuane, said that the gardening sector had traded poorly last summer because of bad weather and a refurbishment programme within the stores, but there was room for expansion in the DIY sector.
Mr Leo Martin, managing director of the merchanting and steel business, said turnover in merchanting was up 18 per cent, from £64 million to £76 million.
"Construction growth has out paced the growth in the economy during this period," he added.
He said that housing and repairs comprised up to 45 per cent of that business, and the demand would continue to be there even though a fall-off in the number of house registrations for the Dublin area this year was envisaged.
"Despite some of the well publicised difficulties in Dublin and greater Dublin, the overall housing position is still good for 1998," he said.
The development of serviced lands in the greater Dublin area would allow for the building of 37,000 houses over the next three to five years, he added.
