Housing boom, Heitons buy-out spell 28% profits boost for Grafton
Builders providers group Grafton's acquisition of rival Heitons in January has boosted the company's interim before-tax profits by 28% to €87.4m, up from €70.4m last year, the company announced today.
Grafton said this was the fourteenth consecutive year of increasing profits for the group.
Sales were up 42% to €1.3bn from €900,000 in the same period last year.
Heitons performed ahead of pre-acquisition expectations, thereby providing an unexpected boost to Grafton profits.
In the UK, demand in the repair, maintenance and improvement market was more subdued towards the end of the half year reflecting the impact of higher interest rates and a slowdown in the rate of increase in house prices.
UK turnover was up 15% to €793m (2004: €690m) and accounted for 61% of group turnover.
Grafton boss Michael Chadwick said: "The strong increase in first half profits and earnings reflects a first time contribution from Heitons, which traded ahead of pre-acquisition expectations, an excellent performance by the Irish merchanting operations in a continuing favourable trading environment and a satisfactory performance by the UK merchanting business in a softening market.
"The Group remains confident of continued growth in profits and earnings per share in 2005."
