LONDON (ShareCast) - Irish building supplies firm Grafton said the recent tough conditions have impacted its profitability "severely", with revenues down 31% in the first half of the year.
Group turnover for the six months to 30th June
was around €990m, down 31% on the €1.4bn in the same period last year and by 24% on a constant currency basis. The Group's merchanting business, which accounts for 85% of its turnover, has experienced a 24% decline in turnover in constant currency terms.
UK operations traded at a profit while Irish operations were loss-making.
"While trading conditions continue to be difficult, turnover has stabilised across the Group's activities since April this year," said the group.
The reduction in group overheads expected in 2009 are now estimated to exceed €70m, against previous indicated savings of €55m.
The recent recovery in the exchange rate between sterling and the euro has also significantly improved the strength of the Group's balance sheet.
"The Group has now entered the seasonally stronger trading period of the second half of the year during which it expects to return to modest levels of profitable trading across the Group while the rationalisation and cost cutting measures taken to date continue to ensure that the Group is best placed to benefit from any recovery in the market," said the group.
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