Grafton sales rise as economy picks up

9th Jan 2014 08:15

- Lifts annual revenue as trading conditions improve- On course to meet full-year profit in line with guidance- Cautious stance towards 2014 prospectsIrish builders merchants and DIY group Grafton said annual revenue increased eight per cent as trading conditions in the UK and Ireland gathered pace.Group revenue for the 12 months to December 31st rose to £1.90bn from £1.76bn for 2012. "Activity levels benefitted from an improvement in economic conditions as the year developed and trading in the final months of the year provided further evidence that the recovery underway in the group's markets has started to take hold," it said in a trading update.Its UK merchanting business, which generates nearly three quarters of total group revenue, reported volume growth after five years of flat or deteriorating volumes.The Irish Merchanting business stabilised in the first half and returned to overall growth in the second half, it added.Meanwhile spending in the Woodie's DIY businesses showed modest growth in recent months with the benefit of promotional activity. However it noted that Irish consumers still remain relatively cautious about their finances.Grafton said it remains on course to report full-year operating profit, before a non-recurring pension credit, in line with its expectations. Chief Executive Officer Gavin Slark commented: "There are encouraging signs that the relatively recent recovery underway in our principal markets appears to have more substantive foundations. "Grafton is well placed to benefit from a sustained improvement in trading conditions, but we are adopting a cautious stance towards our prospects for 2014 until such time that activity levels in our principal markets have strengthened further."CJ