Grafton Group revenue in 2014 was £2,082m (2013: £1900m). Underlying operating profit was up 43% to £110.1m (2013: £77.2m) and pre-tax profit was up 50% to £101.2m (2013: £67.7m). It was the company's fifth consecutive year of profits growth.
The Irish-owned company operates internationally but generates 73% of its revenues in the UK, through stores such as Selco, Buildbase and Plumbase. In the UK it benefited last year from improved economic and market conditions and produced record revenue and operating profit. The overall business performed strongly on the back of increased spending on housing repair, maintenance and improvement (RMI) projects and significant growth in housebuilding.
UK merchanting revenue increased by 9.5% to £1.53bn (2013: £1.39bn) and operating profit grew by 22% to £92.8m (2013: £75.9m).
Chief executive Gavin Slark said: "2014 was a year of significant progress for Grafton which recorded its fifth successive year of strong profit growth and met the board's 'first base' financial targets of an operating profit margin exceeding 5% and a double digit return on capital employed. Given that 2014 was also the first full year of recovery in its major businesses, the overall outlook for the group is positive."