Builders' merchant Grafton Group said today that the intensity of the fall in its markets has moderated and there have been “more stable” sales levels in recent months.
Housing starts are rising in the UK, the company said today in a statement. The UK, which accounts for about 60 per cent of Grafton’s sales, is mired in the worst housing slump in three decades, sapping demand for the company’s brick, tile and plumbing products.
First-half profit fell due to the property slump, Grafton said. The company cut workforce numbers during the first half as part of a drive to revive sales and profit.
“The group is confident of trading successfully through this major cyclical downturn and is well positioned to capitalise on upturns in activity in its markets,” executive chairman Michael Chadwick said in the statement.
Net income declined to €3.4 million in the six months to June 30th from €46.4 million a year earlier.
Sales dropped 31 per cent to €990 million.
Bloomberg
