International builders merchant Grafton said 2017 revenue increased by 8.8% to £2.7bn and it expected to report full year earnings before interest, tax and amortisation slightly ahead of consensus forecasts.
Growth in constant currency was 6.8% and average daily like-for-like revenue increased by 5.7%.

The company said UK merchanting revenue growth softened in the final quarter as expected after a strong showing in the same period a year earlier. While Brexit wasn't mentioned overtly, it added that trading conditions were affected by "general economic and household uncertainty".

Grafton's Irish merchanting business completed its fourth successive year of double-digit like-for-like revenue growth in a favourable economic and construction market "that continues to exhibit good growth prospects".

Demand was driven by growth in the residential repair, maintenance and improvement (RMI) market and recovery in house building from a low base that was expected to gain momentum in the current year.

In the Netherlands, the broadly based economic recovery continued to support increased activity in the housing and non-residential construction markets," Grafton said.

The group's specialist merchanting business experienced good demand in the tools, ironmongery and fixings market. Scholten & de Vries - Estoppey, a third generation family business that distributes ironmongery, tools and fixings from four branches located primarily in the Greater Amsterdam area, was bought in November increasing the branch network in the Netherlands to 59.

The Woodie's retailing business in Ireland traded strongly, benefitting from the strong economy, new and extended product ranges and store upgrades, Grafton said.

"Revenue growth in the fourth quarter was influenced by good demand across all product ranges including the seasonally important Christmas category which typically accounts for a high proportion of revenue," it added.

In manufacturing, strong underlying demand from CPI Mortars' house building customer base to produce double digit revenue growth and market outperformance for the year.

Related share prices
Grafton Group Ut (GFTU) share price