A strong performance by the Buildbase chain has helped lift parent company Grafton Group plc’s annual pre-tax profits by 8% to €228.6m.
Sales at the Irish-based company, whose UK business also includes Scottish builders and timber merchant Flemings and Jacksons, for the year ended December 31, 2007 topped €3.21bn – an 8% rise on the previous year.
Grafton said its UK business experienced a 24% jump in operating profit to €142.1m, with turnover up 14% to €1.98bn. The UK merchanting business enjoyed a like-for-like sales growth of 4.8%.
Buildbase reported “strong growth” due to a combination of reasonable market conditions, operational improvements, contributions from acquisitions and greenfield developments, rationalisation of sourcing arrangements and more positive pricing.
The Buildbase network was expanded with eight acquisitions, adding 10 branches.
Grafton said Jacksons also increased sales and profits despite tougher competition due to significant capacity expansion in the east Midlands market.
“UK sales continued to increase in the first two months of 2008, albeit at a slightly lower rate than achieved in 2007,” said Grafton.
It expects continued growth in the repair, maintenance and improvement market and the non-residential and infrastructure sectors will mitigate the impact of lower output in new housing.
