Grafton Group has posted a strong profit recovery due to the performance of its UK merchanting division.
The UK division, which comprises 70% of group turnover and includes the Buildbase and Jackson Building Centre chains, saw its sales rise by 7% to €1.43bn, while the Irish merchanting business suffered a 10% reverse to €571.9m.
Group operating profit was €33m (2009: €4.9m) and turnover increased 1% to €2bn.
Merchanting revenue was up 2.6% for the year and up 5% in the second half, compared to the same period in 2009. Merchanting operating profit was up to €61.5m (2009: €39.3m),
“Growth, which returned to UK merchanting in first half of 2010 continues and grows,” said Grafton.
The UK business shed 1,564 jobs in the 36 months to December 2010, resulting in €42m annual savings. The UK operating margin was 4.1% (2009: 3.2%)
Grafton’s UK business also includes Selco and Northern Ireland-based Macnaughton Blair Ltd, while Irish operations encompass Heiton Buckley, Chadwicks Builder Centre, Cork Builders Providers, Woodie’s DIY and Atlantic Homecare.
Group DIY business was 7% lower but the trend was said to be stabilising.
