Grafton sales increase to €1.5bn but UK market remains “competitive”
Irish-based building materials company Grafton Group has seen its turnover increase by 6.6pc to £1.08bn (€1.5bn) in the six month period to the end of June.
This compared to sales of £1.015bn for the corresponding period the year before. Revenue was up by 9.5pc on a constant currency basis
In a trading update published this morning the Dublin-based firm said that on the merchanting side of its business overall revenue was up by almost 10pc in the UK and just over 2pc in Ireland while Belgium saw total turnover drop by 4.4pc.
The retailing side of the company’s business increased modestly as sales increased by 2pc, although total retailing revenue was down by 9.3pc due to currency differences.
The company said in a statement that it expected trends of margin pressure due to competitive market conditions in the traditional UK builders to continue.
It added: “The anticipated momentum in growth in the UK has not yet gained the consistent traction expected although the overall trajectory remains favourable. Taking these factors into account, the overall group operating margin is expected to be modestly ahead of the first half of 2014 before property profits.”
Grafton CEO Gavin Slark said: "The fundamental strengths of the group's strong brands and market positions together with the operational improvements made in recent years give us confidence that, despite current challenges, we can deliver the group's medium term targets outlined earlier this year."