11th Jun 2020 10:03
(Alliance News) - Grafton Group PLC on Thursday said its performance so far in 2020 has been hurt by store closures, caused by the new coronavirus outbreak.
The Irish building materials distributor said revenue from continuing operations for the five months to the end of May was down 26% to GBP810.9 million from GBP1.09 billion in the same period last year due to the impact of the Covid-19 pandemic.
Grafton noted that it had a "solid" start to the year before experiencing a decline in activity in the second half of March, resulting in an overall decline in its revenue of 2% in the first quarter compared to the same period last year.
The national shutdown measures remained in place throughout April in the UK and Ireland, and had hurt the company's trading, it said, leading to a decline in revenue of 80% in the month compared to April 2019.
The easing of trading restrictions during May permitted the majority of the company's locations that were closed in March to either fully or partially reopen. Although Grafton said its revenue in May was down 38% on the prior year, this marked a recovery in activity and also reflected the high proportion of branches in the UK and Ireland that traded for only the latter part of the month.
Looking ahead, Grafton said, in view of the continued uncertainty over the impact of Covid-19 on economic and construction activity generally, financial guidance for 2020 will remain suspended.
"The restrictions introduced to contain the spread of Covid-19 had a significant effect on trading since the second half of March and while there are many challenges to be overcome in the months ahead, we are encouraged by the early trading indications following the reopening of our businesses in the UK and Ireland," said Chief Executive Gavin Slark.
"Grafton is in a strong financial position and, with a resilient portfolio of businesses, will emerge from this crisis well positioned for future growth," added Slark.
FTSE 250-listed Grafton shares were trading 2.2% lower in London on Thursday at 641.00 pence each.
By Evelina Grecenko; [email protected]
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