Turnover at Grafton declines

GRAFTON Group has said that its turnover for the first half of this year was down slightly, on a year-on-year basis, but that operating profit is ahead.

The builders merchants/DIY group — which owns the Woodie’s and Atlantic Homecare home improvement chains as part of its retail division and the Heiton Buckley and Chadwick’s merchanting businesses — said yesterday, as part of a first half trading update that turnover for the six months up to the end of June should come in at around €980 million, which would be marginally down on the €990m generated over the same period last year.

This, though, isn’t as bad as it could have been. According to the group’s last interim management statement — published in May — turnover for the first four months of the year was down by €22m on a year-on-year basis. In yesterday’s update, Grafton added that first half group operating profit was up on a year-on-year basis — thanks mainly to a good showing during the second quarter of the year — and management expects to be able to “build on the progress made in the first half, in the months ahead”.

“The group’s financial position continues to be strong, with good liquidity and substantial cash flow from operations. The refinancing of the group’s debt is progressing satisfactorily and on schedule. It is anticipated that new arrangements will come into effect in the third quarter.”

In geographical divisional terms, Grafton’s British-based merchanting business saw a 2% like-for-like drop in first quarter sales but a 4% year-on-year increase in the second quarter, buoyed by a strengthening in Britain’s new housing market. However, the Irish merchanting division saw continued heavy falls — 22% down in the first quarter and a further 10% fall in the second.

Grafton’s interim results are expected to be announced next month. Grafton shares fell almost 2% yesterday.