Grafton reports 'steady progress' into Q4
Building materials group Grafton today said trading performance for the year to November 17 had made "steady progress".
In an interim management statement the company said turnover to the end of October 2010 was €1.70bn, up marginally on the €1.69bn recorded in the same period last year. This compares to a fall in first half Group sales of 1%.
Group turnover in Quarter 1 was €444m (2009: €470 million), in Quarter 2, €535m (2009: €520 million) was recorded and in Quarter 3, €546m (2009: €522 million).
UK merchanting sales for the year to the end of October are up 6%, compared to 5% to the end of June. While Irish merchanting sales continued to fall, the rate of decline continued to ease as the year progressed, the company said.
The Group’s retailing businesses, operating in Ireland, recorded a fall in sales of 7% in the year to October, similar to the performance in the first half of the year. Group manufacturing sales were down 3% in the year to end October, relative to a decline of 7% in the first half.
"The Group’s profitability in Quarter 3 was well ahead of last year and this trend has continued into the fourth quarter," Grafton said.
"In the merchanting division, there was a significant improvement in UK profits and the Irish business returned to breakeven.
"Grafton’s financial position remains strong with good liquidity and positive cash flows from operations. A good base has been established from which renewed growth in earnings can be generated over the coming years as market conditions normalise."
