BUILDERS MERCHANT and DIY group Grafton made a “reasonably good start” to 2011, with revenue up 4 per cent in the first four months of the year, outgoing executive chairman Michael Chadwick said yesterday.
Grafton, which owns the Woodie’s and Atlantic Homecare chains, saw average daily sales in Britain increase by almost 6 per cent in the opening months of the year. Although trading conditions remained challenging in Ireland, the rate of decline in sales here slowed to 2.6 per cent.
Mr Chadwick, who is stepping down from his executive role on July 1st, said significant cost-cutting has been carried out, leaving the group well-placed to benefit from any growth in its markets.
Making his first address to shareholders at the group’s agm yesterday, chief executive designate Gavin Slark said the business was in “remarkable shape”, given the “economic trauma experienced here and in the UK”.
Mr Slark previously headed up UK plumbing and heating merchant group BSS, and will take over fully as chief executive at Grafton in July.
Mr Slark told shareholders that, in the short-term, Grafton’s highest priorities will be to improve operating margins, particularly in the merchanting business, as well as “keeping the cash spinning through”, so the group has the ability to take advantage of “any opportunities coming its way”.
One shareholder expressed concern that two of the group’s key players, Mr Chadwick and chief operating officer Leo Martin, are leaving their executive positions this year and wanted clarification as to the level of input they will make to the group in the future.
Mr Chadwick, who will continue to serve on the board as non-executive chairman after July 1st, said it would be wrong to be “too dogmatic” about how the roles will work. Mr Chadwick expressed gratitude to Mr Martin for his service to the group, revealing that one of the reasons Grafton wanted to acquire Heiton (which it took over in 2005) was to “get hold of Leo”, who was then chief executive of the rival group.
Mr Chadwick also paid tribute to Gillian Bowler who retired from the board yesterday. Describing her as a “remarkable lady”, he said she was a major contributor to the growth of Grafton. He joked that during her 15 years as a director, there were no major mishaps, “at least none that became public”.
