Chief operating officer Leo Martin said the proportion of timber sales had traditionally been higher at its Irish operations. However, the purchase of John Fleming & Co, Scotland’s largest independent timber and builders merchant, by the group’s Buildbase chain and one of 16 acquisitions during 2006, had bolstered UK volumes.
“Timber volumes have been higher, probably in the high single digits and the proportion in the UK over the last two years has increased. Flemings is very strong in timber and that has taken us forward,” he said.
Grafton posted a 12% increase in revenues to €2.93bn, operating profits were up 13% at €245m and pre-tax profits up 30% at €249.4m.
A spokesperson said that trading operations had again been “highly cash generative” and the group ended the year in an exceptionally strong position with shareholders’ funds exceeding €1bn for the first time. The group confirmed its long-term policy of broadening its earnings base through acquisition and expansion of branches.
Mr Martin, however, declined to comment on market talk that Grafton was one of the trade businesses interested in acquiring the heavily indebted Focus DIY group in the UK.
“We have said in our trading statement that we will continue our policy of growth and DIY is a very important market. We have never expressed an interest in the shed business – if I can call it that – in this market,” he said.
The group’s UK merchanting operations, which include Buildbase, Plumbase, Jacksons, Heiton UK and UK Mortar, generated sales of €1.73bn in 2006, up 9%, although the operating margin declined to 6.6% from 6.8%. Operating profits in the UK rose 6% to €114.6m.
