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Profits up for Grafton

Builders merchanting group Grafton reported an increase in sales and profit in the six months to 30 June 2014, helped by improving trading conditions.
Revenue was up 11% to £1.02 billion, and underlying operating profit increased by 62% to £50.6 million. The Group’s operating profit margin increased to 5.0% from 3.4%

Grafton’s UK merchanting operating margin increased to 6.1% from 5.0%. The company said this is due to volume growth in the residential repair, maintenance and improvement market.

Gavin Slark, chief executive officer, said: “These results demonstrate further progress by the Group, in particular, the milestone of a 5% Group operating margin, which is a key point in our journey from recovery to growth.

“The Group remains committed to a growth strategy of organic initiatives and value adding acquisitions.

“We believe the overall outlook is positive, notwithstanding a slower rate of growth in the second half and we are confident that the full year’s trading performance will be at least in line with current consensus expectations.”

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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