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.”