Grafton Group has reported a strong performance in the half year from January 1 to June 30 2017, benefiting from broadly positive market segment conditions and good strategic positioning in key markets.

Group revenue increased by 9.0% to £1.34 billion (six months to June 30 2016: £1.23 billion) and by 6.2% in constant currency; like-for-like Group revenue increased by 5.7%.

Selco reported double digit revenue growth driven principally by the rollout of six new branches, making a total of 54. The business said it remains on course to open at least 10 further branches this year. The traditional UK merchanting businesses reported good like-for-like revenue growth and benefited from the restructuring implemented in the last quarter of 2016.

Grafton says strong revenue growth in the Woodie’s business was driven by employment and incomes growth and a focus on improving the shopping experience for customers. Monthly revenue trends in the second quarter were markedly influenced by the timing of Easter and demand for seasonal products.

“We are pleased with the Group’s first half trading performance which was better than we anticipated and provides a good platform for the full year,” commented chief executive officer Gavin Slark.

“We expect to continue to benefit from both our strong market positions and exposure to multiple geographies and for the positive trends in the Irish and Netherlands businesses to continue in the second half. While we remain optimistic on the medium term outlook for the UK, we are cautious about the shorter term impact of current uncertainty and pressure on real incomes which may temper growth in spending on housing RMI.”