Builders merchanting, manufacturing and DIY group Grafton has reported a 9.5% rise in revenue for last year.

Revenue for the year to the end of December rose to £2.08 billion from £1.9 billion the same time the previous year.

In a trading statement Grafton, which operates builders merchants here and in the UK and is also the owner of the DIY chains Woodies and Atlantic Homecare, said it is benefiting from a sustained recovery in the UK and Irish economies.

Grafton said its UK merchanting business, which accounts for three quarters of its revenue, saw increased demand from consumers repairing and extending their homes and from a pick-up in new home building activity.

It also said the rate of revenue growth in its Irish merchanting business rose sharply last year as the economy moved on to a "stronger growth path".

Grafton noted that revenue growth was at first concentrated on the residential RMI market but has now extended in to the new housing market.

The company also reported signs of a modest recovery in retail sales in Ireland but noted that household finances continued to be under pressure.

Its DIY outlets reported flat revenue for the year in like-for-like terms, which excludes the impact of store openings or closures.

"Revenue trends evolved broadly in line with the group's expectation of a moderation in the rate of growth as the year progressed," commented Grafton's chief executive Gavin Slark.

"The group anticipates reporting 2014 results consistent with current market expectations and enters 2015 in a robust position as it continues to execute its growth strategy," he added.

