Grafton profits up 29% to €131.9m
Pre-tax profits at building company Grafton were 29% higher at €131.9m in 2004. Turnover in Ireland increased by 25% to €1.9bn while there was a 28% rise in UK turnover to over €1.4bn.
Grafton today put the jump in profits in Ireland down to a "gradual economic recovery as the year developed and record levels of activity in the residential construction market" as well as a total of 17 acquisitions in the year.
Earnings Per Share (EPS) before goodwill and property profit increased by 23% to 55.6c.
Grafton boss Michael Chadwick said: "We achieved good quality profit growth in our established businesses in both the UK and Ireland, supported by acquisition, greenfield development, integration and scale benefits.
"Following the Heiton acquisition in early 2005, the group is well placed to continue its successful development strategy with a strong balance sheet and highly cash-generative profitable operations."
Grafton completed the acquisition of rival Heiton on January 7 this year for €398m including debt assumed and the cost of the group’s 29% investment in the business held prior to the offer.
The consideration payable includes the issue of 21.4 million shares by Grafton to Heiton group shareholders.
Heiton group operations, which are located primarily in Ireland, comprises both builders merchanting and DIY activities.
The business trades mainly under the Heiton Buckley name and is the largest builders merchanting business in Ireland operating nationally from 25 branches including Cork Builders Providers. The retail operations of Heiton Group trade from 15 branches under the Atlantic Homecare DIY brand. Heiton Group also operates a small specialist drainage and ground engineering merchanting business from 6 branches in the UK.
