Increased performance in the Irish market contributed to the fifteenth consecutive set of record interim results for building and DIY group Grafton, which were released today.
The interim results are for the six months ended 30 June 2006.
The Group recorded an overall increase in pre-tax profits of €118.3 million, up 35 per cent from last year's €87.4 million.
Operating profits were up by 10 per cent at €106.9 million compared to €97.6 million in 2005. Basic earnings per share increased to 42.8 cent, an increase of 34 per cent 2005 on last year's 32.0 cent.
Weaker demand in the UK - the group's principle market - was compensated by the group's increased performance at its merchanting business in Ireland, as both its Chadwicks and Heiton Buckley divisions performed well.
Turnover increased in Ireland by 18 per cent to €590.7 million compared to €500.0 million in 2005, was thanks in part to the €338 acquisition of the Heiton chain and - according to the group - compensated for softer market conditions in the UK.
Late last year, Grafton Group acquired the Roscommon merchant Garvey's and Dublin firm Davies, which has a plumbing and bathroom business.
Today's announcement recorded overall increased sales of 10 per cent to €1.43 billion compared to last year's €1.3 billion.
The UK business increased sales by 5.4 per cent to €836.5 million compared to €793.3 million last year but operating profit was lower at €49.8 million as operating margins reduced.
Welcoming the results, the Group's executive chairman, Mr Michael Chadwick said:
"The Irish economy provided a very favourable trading environment for the Group's Irish merchanting and DIY businesses in the half year and profitability increased strongly.
"The Group remains confident of continued growth in profits and earnings per share in 2006 and, with a very strong financial position and healthy cash flow, is well placed to take advantage of suitable acquisition and development opportunities," he added.
