Grafton Group makes £108m from merchanting in UK

Grafton, the builders’ merchant and DIY group with operations in the UK and Ireland, made a pre-tax profit of £180m last year.

The group’s 2007 figures showed a 9% rise in turnover to £2.4bn.

The importance of Grafton’s UK operations are revealed in a segmental analysis showing that turnover in the UK in the 12 months to 31 December 2007 ran to £1.5bn, up 14%, while the operating profit of £180m was somewhat down on the previous year’s contribution of £190m.

Michael Chadwick, chairman, said: “The UK continued to be a good market in which to do business.”

Turning to its three main brands in the UK, the group summaries the highlights of the year as:

UK builders’ merchanting - Buildbase

An excellent year with strong growth in sales and profit as there was “a more positive pricing environment”.

Flemings, the builders’ and timber merchant trading from seven branches in Scotland, acquired in 2006, was integrated into Buildbase.

Jacksons, acquired in 2006, gave Grafton a boost to its presence in the East Midlands market. Jackson’s four branches have now been integrated.

UK plumbers’ merchanting – Plumbase

Grafton says that it has the UK’s fourth-largest plumbers’ merchanting chain with 183 branches.

Progress, a 17-branch boiler and heating spares business was acquired in June 2007.

Grafton entered the internet retail market for bathroom products with the acquisition of plumbworld.co.uk. It has subsequently “traded in line with demanding pre-acquisition expectations”.

UK mortar – CPI Euromix

Mortars for residential, commercial and public sector construction projects are supplied from a network of nine plants. Operating profit held steady as competitive pricing pressure held sway, a result of the increase in capacity in this sectors in recent years.