Group revenue was up 5% to €2,171m in 2012 (2011: €2,054m. Pre-tax profit was up 28% to €59.7m (2011: 42.3m).
Though Grafton is an Irish company, UK merchanting accounts for 74% of group revenue. The UK business increased sterling turnover by 3.1% and improved its share of a market that saw a small decline in volumes, Grafton said.
For example, while boiler sales were down 2% in the UK in 2012, Grafton’s Plumbase chain of plumbing supplies increased its turnover and gross margin.
Selco Builders Warehouse also reported strong turnover and profit growth. Selco opened new branches in Hanworth, south London and Tottenham, north London. The scheduled opening later this year of branches in south London at Old Kent Road and Wimbledon will increase the network of Selco branches to 34, including 18 in London.
Chief executive Gavin Slark said: “The self-help measures implemented over the last two years have enabled Grafton to make significant progress in very challenging conditions. We remain cautious on the near term outlook due to the uncertainties in the economies and markets in which we operate. We expect to make further progress in the year ahead by focusing on a new phase of measures to improve profitability."
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