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| Grafton Group Executive Chairman Michael Chadwick |
Irish building materials group Grafton, the owner of brands such as Woodie's, Heiton Buckley, Chadwicks and Atlantic Homecare, announced today that profits increased by 8% to €228.6m in 2007. Sales revenues rose 9% to €3.2 billion.
Adjusted earnings per share at 84.3 cent, was an increase of 8% but below analysts expectations.
In Ireland, sales rose by 2% to €1.23 billion but operating profits fell 5% to €123.7m. Grafton says its builders merchants - Chadwicks and Heiton - were affected by lower levels of home building, with a small fall in profits.
Sales in the DIY sector were up 9%, though growth was 5.3% when the impact of new stores was stripped out. Profits were up in this division, and Grafton said growth would partly offset the effect of the housing slowdown on its merchanting business.
In the UK, profits grew by 24% to €142m on 14% higher sales of €1.98 billion. But Grafton warned that the current weakness of sterling would affect its profits if it continued throughout 2008.
Commenting on the results today, Michael Chadwick, Executive Chairman said: "In another record year, the ongoing development of our businesses in the UK and Ireland has proved its worth. Strong brands in both markets and a healthy balance sheet leave the Group well positioned to respond to more demanding market conditions. We will continue to pursue the consistent growth orientated strategy that has been successful for the past two decades. While maintaining a focus on closer integration, scale related benefits, lower cost base and product sourcing gains, Grafton will also take advantage of acquisition and development opportunities that continue to be available and that represent value and are a good strategic fit."
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