The Grafton deal with Big Orchard which would have provided the group with a profit of €15.8 million (€12.4 million) has fallen through, writes Bill Murdoch. Mr Colm O Nuallain, Grafton's finance director, said "we are disappointed" but "we still have the site". When the sale was announced last August the market reacted positively, pushing the shares up 70 cents to €22.50. The shares yesterday rose 25 cents to €24.25.

Big Orchard had agreed to buy the 3.3 acre site in London's Docklands for €24.9 million but was unable to close. As a result it has forfeited the cash deposit of €1.24 million which has now been transferred to Grafton.