Grafton reports record 2015 revenues

Building materials company Grafton Group reported a rise in full year profit as revenue hit a record.

For the year to the end of December, adjusted pre-tax profit rose 17% to £118.9m as revenue advanced 6% to a record £2.21bn. At constant currency, revenue was up 8.9%.

Adjusted operating profit increased to £126.8m from £110.1m and Grafton attributed the rise in revenue and profit to both both organic growth and contributions from acquisitions.

During the year, the company acquired Dutch tool distributor Isero, giving it a presence in the Netherlands for the first time, and completed a number of bolt-on acquisitions in the UK merchanting market and the opening of five new Selco branches.

Grafton lifted its dividend to 12.50p from 10.75p the previous year.

Revenue at the UK merchanting business was up 8.9% to £1.66bn and operating profit, including property profit and excluding an exceptional pension credit, was 13.8% higher at £105.58m.

Overall trading conditions in the division were broadly positive although the UK economy slowed and margin pressure was a feature of trading in the traditional merchanting business, Grafton said.

Chief executive officer Gavin Slark said: "Grafton made continuing progress in 2015 producing record revenue and solid growth in operating profit.

We continued to invest in organic growth initiatives and selective acquisitions, most notably Isero in the Netherlands. We are confident about the overall prospects for the group and expect to deliver organic growth in the year ahead and to also benefit from recent development activity as well as exposure to the strengthening economies in Ireland and the Netherlands."