Grafton Group plc’s UK merchanting business recorded an 8% growth in operating profits to €54.1m during the first half of 2005, despite a softening market.
The Irish-based company said its UK builders merchanting operations, which includes the Buildbase and Jacksons chains, experienced a 5.1% like-for-like sales growth in the first six months.
Total UK sales grew by 15% to €793.3m, while operating profits increased to €54.1m.
The company said consumer spending had weakened in response to a tightening of interest rates but demand in the repair, maintenance and improvement market proved resilient.
However, it said recent data points to a softer outlook, leading to more subdued demand in the RMI sector.
Grafton’s overall pre-tax profits grew by 28% to €87.4m, helped by a first-time contribution from Heitons, which was acquired last year.
Group sales totalled €1.3bn, up 42% on a year ago.
