Grafton warns of job cuts

Grafton Group is targeting a further operating profit increase and “modest” turnover growth this year, but has warned that cost cutting measures could result in some job losses.

The Dublin-headquartered builders’ merchants and DIY retail group, yesterday, reported a 3% rise in revenue for 2011 to just over €2.05 billion.

Underlying operating profit was up by 13% to €54.7 million and underlying pre-tax profits rose by 3% to €42.3m. However, exceptional restructuring costs of €32m — including €19.4m linked to “onerous leases” in the Irish retail business — dragged those profit figures down to €22.7m and €10.3m, respectively — on both counts, down significantly from 2010 levels.