Grafton Group announces small increase in turnover

Grafton Group has announced a slight increase in turnover for the 10 months to 31 October 2011, when compared to the same period last year.

The builders merchanting and DIY Group revealed that group turnover for the 2011 period was €1.73bn, compared to €1.70bn in 2010.

The UK business, which accounts for more than 70% of group turnover, increased sterling turnover by 4.8% in the 10 months compared to the same period last year, with growth of 5.0% in first half.

Average daily UK like-for-like sterling turnover increased by 4.0% in the 10-month period, but moderated to 2% in September and October.

This compares to growth of 4.7% in the first half.

Irish Merchanting turnover declined by 7.7% in the 10 months which compares to a decline of 7.2% in the half year.

Turnover in the Irish retailing business declined by 5.7% in the period to October compared to a decline of 4.6% in the first half.

Turnover in the manufacturing segment increased by 6.4% in the 10 months to October relative to growth of 6.5% in the first half.

"Uncertainty on the economy, low consumer confidence and tight lending conditions continue to limit growth in RMI volumes in the UK market," said a company statement.

"In Ireland, the economic environment is likely to make trading conditions challenging for some time ahead.

"The Belgian joint venture completed its third bolt on acquisition this year, bringing the Belgian annualised turnover to circa €55m. Selco’s programme of new store development in the UK continued with a second store opened in Slough during September.

"Following the completion of the successful refinancing the Group now has €388m of bank facilities which have an average maturity profile of more than four years. When combined with the US Private Placement loan notes this leaves Grafton in a strong financial position.

"Due to the further delay in recovery in our sector and the resultant lower operational leverage, the Group expects full year operating profit before restructuring and amortisation costs to be in the range of €52-€55m (2010: €50.6m). The Board remains confident of achieving further improvement in profitability going forward."