Grafton Group reports revenues rise for 2012

Grafton Group said on Wednesday revenues for last year increased by almost 6 per cent as the company's merchanting business grew.

Grafton Group said on Wednesday revenues for last year increased by almost 6 per cent as the company's merchanting business grew.

In a trading statement for the year end of December, the group reported revenues of €2.17bn compared to €2.05bn the previous year.

The firm anticipated operating profits for 2012 at no less than €70m, up from €56.9 the year before.

"The anticipated operating profit outcome reflects an improvement in trading in the final months of the year and the benefit of a relentless emphasis on improving performance through self-help measures against the backdrop of difficult market conditions," Grafton said in a statement.

The builders merchants and DIY group - which has operations in the UK, Ireland and Belgium - said trading ended on a strong note with an increase in average daily UK like-for-like merchanting turnover.

UK merchanting sterling turnover increased by 3.1% in the year while average daily like-for-like sterling turnover climbed 1.7% including a growth of 3.7% in the last two months of the year.

However turnover in the Irish retailing business declined 9.2%.

"The immediate outlook for demand in the group's markets remains challenging and the timing and extent of any recovery is unclear," the company said in a statement.

"There will be a continued focus in 2013 on operational initiatives to improve profitability."

Grafton added that its strong portfolio and revenues have left the group well placed for growth and development this year.

Shares soared 4.33% to €4.10 at 10:40 Wednesday.

Preliminary results for 2012 are expected to be announced on March 7th.

RD

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022