Grafton turnover to October down 28%

BUILDERS’ MERCHANTS and DIY group Grafton said it is continuing to experience very challenging trading conditions as it announced that turnover to the end of October was €1.6 billion, down 28 per cent on the same period a year earlier.

In a trading update, the group, which owns the Atlantic Homecare and Woodies DIY chains, said the group turnover stabilisation seen since April had been maintained in September and October.

Group turnover during the first quarter was €470 million, while in the second and third quarter turnover was €520 million and €522 million respectively. Turnover for the month of October was €174 million.

In Ireland, like-for-like sales per working day in October were down 30 per cent compared to minus 37 per cent for the six months to June 30th, 2009.

Like-for-like sales per working day in the group’s UK businesses were down 4 per cent on a constant currency basis last month as against minus 18 per cent in the first half of 2009.

In the period to the end of October, in constant currency terms group merchanting turnover was down 21 per cent compared to 24 per cent at the half year, DIY turnover declined 19 per cent as against 18 per cent at the half year, and manufacturing was down 45 per cent versus 49 per cent at half year. “On the whole we view the stabilisation in sales as a positive, but the group remains heavily exposed to the weak UK and Irish economies,” Dolmen Stockbrokers analyst Stephen Taylor wrote in a note to clients.