Grafton beacon of light?

GRAFTON Group could prove a beacon of light for Irish construction-based stocks next year by remaining profitable, according to one leading stockbroking firm.

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.