Interim Management Statement

RNS Number : 4183L

Grafton Group PLC

06 May 2010

 



Grafton Group plc

Interim Management Statement

Grafton Group plc, the builders merchants and DIY Group with operations across the UK and Ireland, issues the following Interim Management Statement, which is in accordance with the reporting requirements of the EU Transparency Directive, in advance of the Company's Annual General Meeting to be held at 10.30am today in the IMI Conference Centre, Sandyford Road, Dublin 16.

January trading was badly affected by the adverse weather conditions and sales in the month were €25 million below the previous January.  Following this difficult start, trading in the UK, which now accounts for over 70 per cent of Group turnover, picked up with like for like turnover growth in each of the following months.  In Ireland, sales continue to be below levels achieved in 2009 but the rate of decline has reduced.

Group turnover for the four months to the end of April was €617 million, down €22 million on the first four months of 2009.  UK merchanting sales in sterling increased by 4 per cent  in the three months to the end of April.  The Group has seen a strong resurgence in new house building in the UK and is optimistic that the positive effects of this on its businesses will continue.

During the first three months the Group incurred further rationalization costs of €1.7 million (three months to March 2009: €4.1 million) and this will result in annualised savings of €4.2 million.

The Group continues to retain good liquidity and financial flexibility with a strong balance sheet and high cash deposits.  Negotiations continue with regard to refinancing some of the Group's debt and it is anticipated that new arrangements will come into effect in the third quarter of this year. 

The benefit of the recent return to growth in turnover, the significant reduction in the Group's cost base and strengthening market positions are being reflected in an improved operating performance by the Group.

The Board is pleased to announce that Roderick Ryan will be appointed as Senior Independent Director to succeed Anthony Collins who is retiring from the Board at the AGM later today.  Mr. Ryan joined the Board as a non executive Director in 2006.

6^th May 2010

For further information please contact:
Grafton Group plc + 353 1 216 0600	Murray Consultants + 353 1 498 0300
Michael Chadwick, Executive Chairman	Joe Murray
Colm Ó Nualláin, Finance Director
	Citigate Dewe Rogerson + 44 207 282 2945
	Ginny Pulbrook

 

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