Business Irish

Monday 29 May 2017

Woodies' owner Grafton resilient 'despite challenging trading conditions' as revenue jumps 13pc to record £2.5bn

Ceo Gavin Slark
Ceo Gavin Slark
Louise Kelly

Louise Kelly

Grafton Group has seen revenue grow by 13pc to a record £2.5bn as the international builders provider posts its final year results.

The company, headed by ceo Gavin Slark, said that the group has had strong organic growth in the Irish merchanting, Woodie’s DIY and manufacturing businesses.

Adjusted operating profit for the group has increased 12pc to £142m, compared with £127.3m the previous year.

The investment in Selco with the opening of seven branches has been successful and at least ten other branches are expected to be opened this year.

Grafton has generated cash from operations of £168.6m resulting in net debt reduction by £17.3m and year-end gearing of 9pc.

"2016 represented an overall strong financial performance despite challenging trading conditions in the traditional UK merchanting market," Gavin Slark, Chief Executive Officer said.

"These results demonstrate the resilience of the Group’s spread of businesses, with strong market positions and exposure to multiple geographies. While uncertainties remain about the UK economy, the recovery in the Irish and Netherlands markets is forecast to continue. 

"The Group’s very cash generative operations and strong balance sheet leave it well positioned to invest in areas where we see good opportunities for growth.”

According to the firm report, the Isero acquisition in the Netherlands contributed £9.1m to operating profit, an EBITA margin of 10.4pc and is a strong platform for expansion.

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