Grafton Group profits jump but economic worries remain

31st Aug 2011 11:40

Grafton Group, the DIY and building supplies company, saw profits jump in the six months to the end of June.The firm posted pre-tax profits of €15.1m, up 13% on the previous year. It also increased its dividend by 10% to 2.75c.But the company, which trades under the Buildbase, Plumbase, Jackson and Selco brands, said its Irish business continued to prove a drag. Average daily like-for-like sales in July and August increased by 2.5% in the UK and were down by 5.8% in Ireland."It is expected that the current softness in UK growth and pressure on disposable incomes will continue to weigh on consumer spending over the remainder of the year," the company said."The Irish economy continues to face major challenges and while many risks remain, some evidence of stabilisation is beginning to emerge."