Grafton Group revenues rise 8%

Builders merchanting and DIY group Grafton said revenues rose 8 per cent last year, as trading conditions continued to improve in the UK and Ireland.

Group revenue for the twelve months to December 31st was £1.9 billion (€2.3 billion), an increase of 8 per cent from £1.76 billion for 2012.

In a trading statement this morning, the company said its UK merchanting business, which generated almost three quarters of group revenue, returned to volume growth following five years of flat or declining volumes.

Whilst there was a noticeable improvement in sentiment during the second half of the year, Irish consumers still remained relatively cautious about their finances, the company said.

“Spending in the Woodie’s DIY businesses showed modest growth in recent months with the benefit of promotional activity.”

Grafton chief executive Gavin Slark said recent recovery in the group's main markets appears to have more substantive foundations.

“Grafton is well placed to benefit from a sustained improvement in trading conditions, but we are adopting a cautious stance towards our prospects for 2014 until such time that activity levels in our principal markets have strengthened further,” he said.

The group said it remains on course to report full year operating profit in line with its expectations.