Builders merchants and DIY retail group, Grafton, this morning posted a massive 88pc surge in pre-tax profits in its first half of the year, largely thanks to a sharp rebound in British sales.
The Irish company posted underlying profit before taxation that rose to Stg45.9 million from Stg24.5 million in the same period a year ago on revenues that climbed 11pc to Stg1.02 billion.
Underlying operating profit was up 62pc to Stg50.6 million from Stg31.2 million while group operating profit margin increased to 5.0pc from 3.4pc and its UK Merchanting operating margin increased to 6.1pc from 5.0pc.
Adjusted basic earnings per share was up an impressive 92pc to 15.4p.
Its UK merchanting business performed strongly due to volume growth in the residential repair, maintenance and home improvement market.
Merchanting business in Ireland also showed strong operating profit growth as the market recovery gained momentum while its DIY business in Ireland improved its performance in a stable market.
"These results demonstrate further progress by the Group, in particular, the milestone of a 5pc Group operating margin, which is a key point in our journey from recovery to growth," said Gavin Slark, Chief Executive Officer.
"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," Mr Slark added.