Grafton sales stabilise after slump

4th Mar 2010 15:44

Irish and UK-focused builders merchant Grafton saw profits slump in what it describes as the most difficult market for decades in 2009, though sales have stabilised recently.Revenue fell 26% to €1.98bn and by 20% on a constant currency basis. Profit before taxation was €13.6m, compared to €64.1m in 2008. The result for the year included an investment profit of €22.1m, a property profit of €6.1m and net rationalisation and impairment costs of €19.1m."The scale and intensity of the downturn made it inevitable that the group would experience a sharp decline in sales. However, this has been mitigated by satisfactory market share performances across our markets," it said.Sales in the first two weeks of January 2010 were also affected by severe adverse weather conditions. Since then sales have been close to expectations and last year with good increases into the UK new housing sector."The group's strong businesses and financial strength position it to consolidate market share in its key markets. With a lower cost base and more integrated merchanting business, it is well placed to benefit from its operating leverage as markets recover," the statement added.A 2.5c second interim makes a 5c total dividend for the year.