Grafton half-year turnover drops €450m
Builders' merchants and DIY retailers the Grafton Group said today that turnover for the first six months of the year was down €450m or 31%.
The group, owners of Woodies, Heatons and Chadwicks with operations in Ireland and the UK, said turnover for the six months to June 30 was around €990m, down from €1.4bn in the same period last year.
In a statement the company said it was experiencing "the most challenging trading conditions in decades".
"The ongoing lack of available credit and depressed markets have resulted in sharp falls in investment and spending on housing and residential repair, maintenance and improvement," the statement said, adding that the group’s profitability has been "impacted severely".
UK operations traded at a profit while Irish operations were loss-making, the company said.
"While trading conditions continue to be difficult, turnover has stabilised across the Group’s activities since April this year," the company said. "The Group continues to have the advantage of a strong balance sheet with relatively modest gearing and high cash balances providing adequate financial resources to fund Group activities."
Looking forward, the company said that low interest rates and a rising UK mortgage market were encouraging for the future.
