6th Jan 2010 07:00
Grafton Group plc
Trading Update
Grafton Group plc, the builders merchants and DIY group with operations in the UK and Ireland, issues this trading update for the year ended 31st December 2009.
The stabilisation of Group turnover referred to in previous updates has continued through to the year end with sales in the second half being similar to those achieved in the first six months. In line with market expectations Group turnover to the end of December was c. €1.98 billion down c. €0.69 billion or 26 per cent on the €2.67 billion achieved in 2008.
In the second half of 2009, in constant currency terms, Group merchanting turnover was down 14 per cent compared to 24 per cent in the first half. DIY turnover was down 18 per cent in the second half, unchanged on the first half. Manufacturing turnover was down 36 per cent in the second half compared to 49 per cent in the first half.
Like for like sales per working day in the UK businesses, which account for over two thirds of Group sales, continued to improve relative to earlier in 2009. On a constant currency basis they were down 7 per cent in the second half of the year compared to minus 18 per cent in the first half. Trading conditions remain challenging in this market. However, "green shoots" evident in key UK sectoral indicators such as increased mortgage lending, housing transactions, house building and some house price inflation are being reflected in improving sales across our UK businesses. In Ireland, like for like sales per working day in the second half were down 32 per cent compared to minus 37 per cent in the first half.
During the second half of the year the Group continued to be strongly cash generative and net debt levels were further reduced. Grafton has a comprehensive and strong business franchise in its core markets and benefits from a conservatively managed and securely funded balance sheet with good liquidity and substantial cash deposits. While the Group is cautious about the outlook for 2010 it will benefit from the cost reduction and integration programme implemented over the last 18 months. The Group is well placed to capitalise on any improvement in its markets.
Ends 6 January 2010
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For further information please contact: |
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Grafton Group plc + 353 1 216 0600 |
Murray Consultants + 353 1 498 0300 |
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Michael Chadwick, Executive Chairman |
Joe Murray |
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Colm Ó Nualláin, Finance Director |
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Citigate Dewe Rogerson + 44 207 282 2945 |
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Ginny Pulbrook |
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Grafton Group