Woodies set for €6m expansion

Grafton plc's DIY business, Woodies, plans to create 150 jobs in a €6 million expansion that will involve two new stores and the replacement of an existing outlet.

The company is planning to build 50,000 sq ft stores in Naas, Co Kildare, and in Kilkenny, while it intends moving its existing store in Bray, Co Wicklow, to a new site in the town's Southern Cross retail park.

Woodies' chief executive Mr Ray Colman said yesterday that the developments would create 150 jobs over the next 18 months, bringing its total staff complement to 1,200.

A company statement said the new developments would represent an investment of €6 million. It costs an average of €2 million to build a Woodies' store.

Woodies formally opened a store in Clonmel, Co Tipperary, yesterday. It has opened four over the last year.

Mr Colman said that the development had allowed the business to increase its turnover to €100 million a year.

Its parent, Grafton, recently agreed to sell and lease back its site on the Naas Road, Dublin, to Goodbody Stockbrokers. Goodbody plans to operate it as a unit trust for its self-administered pension schemes.

The deal will realise a profit of €6 million for the combined builders' merchants/DIY group. That site will house a 50,000 sq ft Woodies' store and 14,000 sq ft garden centre. Mr Colman confirmed that the store would be completed this summer.

Grafton is set to publish its 2003 results next week. In January, the group issued a trading statement saying that it expected results to be in line with market expectations.

At that time, Davy Stockbrokers forecast that Grafton would post a pre-tax profits increase of 28 per cent to €98 million for the year, and earnings per share growth of 20 per cent to 43.6 cents.