Exceptional costs of £9.6m weighed on the bottom line, while adjusted pre-tax profit increased slightly to £8.2m from £7.8m.
Restructuring measures introduced to respond to subdued market conditions included the closure of ten branches this summer and the consolidation of two recycling plants into a single facility.
The company incurred £1.7m in redundancy costs during the period.
Chief Executive Will Truman said: “Since becoming CEO in February, I have spent time with teams across the Group and met with customers, suppliers and investors. I am confident in the strength of our business and the clarity of our strategy, and I am working closely with stakeholders to unlock opportunities, eliminate inefficiencies and accelerate growth.
“Our first-half underlying financial performance was robust, despite weak trading conditions, rising input costs and the effects of the situation in the Middle East. Adjusted operating profit was 10% ahead of last year, supported by a strong contribution from Alunet and disciplined cost control.
“Demand in the RMI market remains subdued and conditions in new build housing have become increasingly challenging. Against this backdrop, we have continued to invest in progressing our strategy, focusing on initiatives to drive volume and gain market share, while implementing restructuring programmes to increase profitability.
“The momentum in Q2 sales has continued into the second half and we expect to make further progress this year. The medium and long-term prospects for the UK construction market remain attractive, and we are well positioned to drive sustainable growth in shareholder value.”
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