Builders' merchants Grafton reported a 19 per cent rise in pre tax profits to €80 million in 2002.
A good performance from the group's British operations and a pick-up in the second half in Ireland provided the platform for the growth in profits.
Grafton now holds an 8 per cent share of the British merchanting market and is the fastest-growing company in the sector. British operating profits grew by 34 per cent in 2002.
In Ireland, merchanting strengthened in the second half and Woodie's DIY continued its strong growth. Woodie's DIY turnover grew as a result of two new stores, and strong like-for-like growth from existing stores.
Irish turnover increased by 3.7 per cent to €343.8 million. Operating profit declined by 1.5 per cent to €38.6 million at an operating margin of 11.2 per cent, compared to 11.8 per cent in 2001.
Grafton said the Irish housing sector continued to grow following the restoration of mortgage interest relief .
A strong second-half performance by the group's Irish operations resulted in turnover growth of 8.8 per cent, and operating profit increasing by 7.7 per cent in the final six months of the year.
In its outlook Grafton said that economic uncertainties remain, but growth is still positive and trading for the year to date has been good.
The group has already announced a share buyback and so no final dividend will be declared. Total redemption proceeds from the buyback amount to 9 cent per Grafton Unit, which is equivalent to an increase of 12.5 per cent on the total dividend of eight cent paid for the previous year.