Grafton revenues rise on back of improved market conditions

Builders' merchant and DIY group Grafton has reported a rise in revenues to £1.87 billion (€2.64 billion) for the ten months to October 31.

Grafton said revenues increase 6 per cent, or 8.7 per cent in constant currency, with trading “positive against a competitive backdrop” in the four months to the end of October, driven by broadly favourable economic and market conditions in the UK and Ireland.

The company said its UK merchanting business, which accounted for three quarters of group revenue, reported solid growth in average daily like-for-like revenue.

Its Irish merchanting business continued to benefit from the ongoing recovery in the Irish economy which gathered pace during the year.

Overall, Grafton said the group’s financial position remains strong supported by good cash flow from operations.

"With the continued progress of our organic initiatives including the development of Selco, bolt on acquisitions in the UK and the creation of a new platform for growth with the purchase of Isero in the Netherlands, we remain confident in the Group's ability to deliver continuing growth in profitability," chief executive Gavin Slark said.

Grafton last month agreed to acquire Dutch tool distributor Isero for €91.5 million. The acquisition is the group’s largest to date in continental Europe.

On November 6, the Group acquired Wollens, a general merchanting business trading from two branches in Glastonbury and Cannington.