Grafton Group has posted "favourable" trading conditions in the first half of 2014. Group revenue for the six months to 30 June 2014 increased by 11.3% to £1.015bn (six months to June 2013: £912m).

In Ireland, Grafton saw 7.4% like-for-like revenue growth during the three months to 31 March, 18.6% during the three months to 30 June and 13.1% during the six months to 30 June.

Trading in the UK merchanting business, which accounted for three quarters of Group revenue, was influenced by "better weather conditions together with solid volume growth in the residential repair, maintenance and improvement (RMI) market," the Group said.

"Investment by households in residential RMI projects was underpinned by the continued revival in the UK housing market which saw transactions increase by a quarter over the past year."

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A statement from Grafton explained: "The Group continues to develop organically, principally through the roll out of Electricbase and Hirebase implants, the expansion of Plumbase Industrial and the opening of new Selco branches, with the new Isleworth store scheduled to open in September.

"At the period end the Group acquired Beaumont Forest Products, a specialist timber merchant which trades from three branches in the Greater London Area."

The Group also said the merchanting business in Ireland has benefitted from the early stages of a recovery in construction. It added growth was primarily driven by stronger demand in the residential RMI segment of the market.

The recovery in the DIY retailing business in Ireland continued in the half year, supported by employment growth and improving trends for retail sales from a low base, it added.

Gavin Slark, Chief Executive Officer of Grafton Group plc, commented: "Our UK and Irish merchanting businesses have benefited from an improved market backdrop which, combined with our organic growth plans, means the Group is well placed to build on its strong first half performance."

(IT/JP)