Grafton revenue rise 9.5% amid favourable trading conditions

8th Jan 2015 08:46

Favourable trading conditions and sustained recovery in Ireland enabled DIY and building group Grafton to nail full year revenues and profits in line with expectations.The group, which operates in the UK, Ireland and Belgium, said the rate of growth had eased as expected in the fourth quarter to 4.0% from 5.4% in the four months to October to produce a 9.5% rise to £2.08m for calendar 2014.The firm's UK merchanting business, which accounts for 75% of group revenue, benefited from the continued recovery in the global economy, though the group added that volumes in the plumbing and heating markets remained low.Bigger demand in the residential RMI market was boosted by increased customer confidence and household spending, the group said, adding that the sector had suffered by continued economic weakness in Belgium."Revenue trends evolved broadly in line with the group's expectation of a moderation in the rate of growth as the year progressed," said chief executive Gavin Slark."The group anticipates reporting 2014 results consistent with current market expectations and enters 2015 in a robust position as it continues to execute its growth strategy."The retailing division, which accounts for 8% of the group revenue, registered a slow recovery in core retail sales in Ireland, as flat like-for-like revenue for the year reflected the discontinuance of non-core lines and strong demand for seasonal summer products in the prior year.Grafton shares were up 0.24% to 633.00p at 09:46 on Thursday.