Grafton Group 2015 revenue up 6.3%

Builders merchant and DIY company Grafton Group reported a 6.3% rise in revenue in 2015, as it reiterated its full year operating profit guidance.

In a trading update for the year ended 31 December, Grafton said revenue came in at £2.21bn from £2.08bn in 2014.

In its merchanting division, which accounts for 91% of group revenue, Grafton saw strong trading. Ireland was particularly solid, as record low interest rates and growth in house prices and housing transactions supported increased activity in the residential repair, maintenance and improvement and new build markets.

Meanwhile, UK merchanting revenue was up 8.9% amid competitive market conditions, particularly within plumbing and heating.

Chief executive officer Gavin Slark said: “2015 was a year of significant development activity for the group with the continued expansion of the Selco branch network, bolt-on acquisitions in the UK merchanting market and the purchase of Isero which now gives the group a presence for the first time in the Netherlands market.”

Slark said he expects the group to report 2015 operating profit in line with the guidance of between £125.5m and £127m provided at the interims on 12 November.

At 0840 GMT, shares were down 0.4% to 729p.