Grafton’s UK merchanting business, which also includes Selco and Jackson Building Centres, saw its operating profits increase 4.1% to €39.1m for the six months ended June 30, 2013.
Sales for the division rose 1% to €788.2m. Product price deflation was estimated at 1.3% and a volume growth of 3% outperformed the market.
Buildbase’s sales were described as improving strongly in May and June, finishing the half-year with good momentum in line with recovery in the economy and housing market.
And the latest trading information suggests the UK merchanting business recorded a 5.5% growth in like-for-like revenue in July and August.
Grafton’s Irish merchanting division saw its operating profits double to €1.8m, with sales declining by 1%.
“Trading in the Irish merchanting division was set against the backdrop of an economy that has stabilised and where a relatively slow recovery is underway,” Grafton said.
Grafton painted an upbeat picture in its business outlook in the half-year results.
“There are clear signs that the UK housing market has strengthened this year and the improving trend in property transactions and mortgage approvals should over time lead to a gradual pick-up in spending on residential repair, maintenance and improvement from the current low levels following almost five years of weak underlying demand,” it said.
Group-wide Grafton recorded underlying pre-tax profits of €28.7m, a 27.5% improvement from sales of €1.07bn (+1.7%).
