Rev­enue at Grafton Group up 9.1%

The Irish Times - Business - - BUSINESS / NEWS - COLIN GLEE­SON

Rev­enue at build­ing ma­te­ri­als com­pany Grafton Group in­creased 9.1 per cent in the 10 months to the end of Oc­to­ber.

The firm, in a note to the stock ex­change yes­ter­day, said rev­enue amounted to £2.3 bil­lion (€2.6 bil­lion), which was an in­crease of 9.1 per cent on rev­enue of £2.1 bil­lion com­pared to the same pe­riod last year. The in­crease in con­stant cur­rency terms was 6.9 per cent.

On mer­chant­ing, which com­prises more than 90 per cent of the com­pany’s rev­enue, Grafton said the rate of like-for-like rev­enue growth in the UK mer­chant­ing busi­ness was in­flu­enced by a weak third quar­ter in 2016.

De­mand soft­ened in Oc­to­ber and vol­umes were broadly flat when mea­sured against an im­prov­ing trend in the fourth quar­ter of last year.

Pace of growth

The com­pany said the pace of growth in the Ir­ish mer­chant­ing busi­ness “mod­er­ated a lit­tle”, but that the prospects for sus­tained growth were “pos­i­tive”.

It said the re­cov­ery in house build­ing “gath­ered mo­men­tum from a low base but it will re­quire sev­eral years for sup­ply to meet on­go­ing de­mand”. “Non-res­i­den­tial con­struc­tion is in the early stages of a re­cov­ery that is ex­pected to re­main on a firm growth path,” it said.

On re­tail, which com­prises 6 per cent of rev­enue, it said spend­ing in Woodie’s stores “in­creased strongly”.

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