Grafton Group makes interim pre-tax profit of £72m

Grafton Group, the builders’ merchants and DIY group, has made a pre-tax profit of £72m in the first half of 2007, down £8m on the £80m figure in the comparable period last year.

Turnover (six months to 30 June) was 13% higher at £1.1bn.

The UK business delivered a strong increase in profit helped by good underlying demand in the residential repair, maintenance and improvement market. Acquisitions also contributed.

Grafton’s UK builders’ merchanting division operates under the Buildbase brand. There was like-for-like sales growth and improved margins as a result of more favourable purchasing arrangements. Branches in the Midlands and South of England performed particularly well.

The seven-branch, Scottish-based Fleming business acquired in 2006 was successfully integrated into the Buildbase network. Running at only break-even before the purchase, it is now delivering a profit.

The group’s UK plumbers’ merchanting division enjoyed increased sales, with useful contributions from the six businesses acquired during 2006.

The division snapped up Progress Group in June 2007. This is a 17-branch boiler heating spares business. Also, Plumbase extended its market coverage as a result of opening two new branches.

The third division is UK Mortar which trades as EuroMix. It is a player in the UK dry mortar market, trading from nine plants. Volumes were driven higher thanks to a strong demand from the residential, commercial and public sectors. The new plant in Leeds traded in line with expectations.