29th Apr 2020 10:01
(Alliance News) - Grafton Group PLC on Wednesday said its performance since mid-March was hurt by lockdowns but it expects improvement going forward.
The building materials distributor said trading in the year to mid-March was broadly in line with expectations as branches generally operated at "close to normal" levels of activity.
Grafton said the impact of Covid-19 became visible over the second half of March and intensified following the introduction of government restrictions leading to national lockdowns.
The majority of the Dublin-based company's UK distribution branches and manufacturing plants were closedn and the distribution business in Ireland was scaled down. In addition, trading in the Woodie's do-it-yourself home and garden business was suspended except for online transactions.
More positively, Grafton said the construction activity has largely continued in the Netherlands, with the company currently trading there at 90% of anticipated revenue.
From Monday next week, Grafton said many of its branches will return to more extended operations and will gradually expand their offering over the coming days and weeks.
Looking ahead, Grafton said it continues to be in a "strong financial position with excellent liquidity". As at Friday last week, the company had total liquidity of GBP562 million primarily in accessible cash deposits.
"Grafton has a strong and geographically diverse portfolio of brands and very experienced management teams who are focused on protecting the group's businesses and the interests of all stakeholders," said Chief Executive Gavin Slark.
"The actions that we are taking are to ensure that we emerge from the crisis as a strong and vibrant business," added Slark.
FTSE 250-listed Grafton shares were trading 3.2% lower in London on Wednesday at 655.90 pence each.
By Evelina Grecenko; [email protected]
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