Grafton beacon of light?
In a comprehensive update note on the building materials/DIY group, Merrion Stockbrokers said that “a strong focus on cost control will enable Grafton to stay profitable in 2009, while assuming a very sharp two-year like-for-like sales decline of 29% — now 5 percentage points lower than we previously forecast.”
“As a result of management’s cost saving actions, we expect Grafton will remain profitable at both the EBIT (earnings before interest and tax) and pre-tax profit level in 2009,” the note stated.
