Woodie's DIY owner reports revenue of £2.7bn in 2017
The owner of Woodie's DIY, Grafton Group, has seen its revenue increase 9pc to £2.7bn (€3bn) in 2017.
In its statement of financial results for 2017, the group reported an operating profit increase of 15pc year-on-year to £163.7m, while its earnings per share also increased by 15pc to 54.9p.
The strong performance was driven principally by organic growth, and an improvement in the group's gross margin and good cost control, the group said.
In addition, Grafton, which is also behind Chadwicks and Heiton Buckley, said that it benefited from its exposure to multiple geographic markets and a well diversified customer base.
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"2017 was a very good year for Grafton that saw all segments and geographies contribute to strong revenue growth and a 15pc increase in adjusted profit before tax and earnings per share," Gavin Slark, CEO of Grafton, said.
In the UK, where the group generates about 75pc of its revenue, the merchanting business made “good progress” with operating profit passing the £100m mark.
Meanwhile, the Irish group, which is a member of the FTSE-25, said that the market leading merchanting business in Ireland continued to be an important and consistent growth engine for it, delivering double digit revenue growth and a strong increase in profitability for the fourth successive year.
In its Woodie's DIY division, the Irish market delivered high levels of growth in revenue and profit, which the group said reflected its success in repositioning the business, and the positive response from customers to the store upgrade programme.
The operating profit margin progression was very strong in the Woodies division in Ireland, increasing by 150 basis points to 6.2pc.
Looking forwards Mr Slark said that the group’s expectations were positive for the current year, “and we remain confident about the potential to take advantage of opportunities that create value for shareholders."
Earlier this year the company announced that it had agreed to pay £82.4m (€93m) to buy London specialist decorator merchant Leyland SDM. The business operates 21 outlets in central London, and generated sales last year of £47.8m (€54m).