PAMELA NEWENHAM
Grafton Group has announced the acquisition of Direct Builders Merchants, a general merchanting business in the UK.
Grafton said the bolt-on acquisition, which had revenue of £4.8 million in the financial year to 31 December 2013, improves the group’s coverage of the merchanting market in Kent and the South East of England.
The builders merchanting and DIY group has had a strong performance in the first half of the year, with revenue, profit and earnings per share all rising on the back of improving trading conditions.
Grafton last week said group revenue for the six months to the end of June rose by 11 per cent to £1.01 billion. This compares to £912 million for the same period in 2013.
Underlying operating profit for the first-half of this year was up 62 per cent to £50.6 million, while profit after tax climbed 93 per cent from £18.6 million to £35.8 million.
The company said its UK merchanting business, which constituted 73 per cent of group revenue, performed strongly due to volume growth in the residential repair, maintenance and improvement market.
