Summer deluge weighs on Grafton
Turnover at builders merchanting group Grafton rose in the first half of the year, but the Irish business fell as bad weather and weak consumer spending hit revenue.
In a trading update, the company said overall turnover for the group was €1.05 billion, up 4 per cent on the same period in 2011. However, although the UK business saw a rise in revenue, it was the favourable exchange rate between sterling and the euro that helped lift figures.
The UK merchanting business saw average daily like for like turnover rise by 1.4 per cent in the six months to June 30th. Although there was an improvement in revenue in the first quarter, the record levels of rainfall recorded in the second quarter adversely impacted the business.
The UK business accounts for 74 per cent of the group’s turnover.
The Irish business suffered, with the merchanting division down 9 per cent and retailing down 12.5 per cent. The company trades under the Heiton Buckley, Chadwicks, Macnaughton Blair and Woodie's DIY brands in Ireland.
Grafton said its operating performance was “satisfactory” given the demanding market conditions.
The group is set to report its interim results for the first half of the year at the end of next month.