Interim Management Statement

RNS Number : 3884W

Grafton Group PLC

18 November 2010

 



Grafton Group plc

Interim Management Statement

Grafton Group plc, the builders merchanting and DIY Group with operations across the UK and Ireland, issues this management statement for the period ending 17^th November 2010.

Group turnover to the end of October 2010 was €1.70 billion up marginally on the €1.69 billion recorded in the same period last year.  This compares to a fall in first half Group sales of 1%.  The Group's trading performance has made steady progress during the year recording reasonably consistent like for like sales increases since February 2010.  Group turnover in Quarter 1 was €444 million (2009:  €470 million), in Quarter 2, €535 million (2009:  €520 million) was recorded and in Quarter 3, €546 million (2009:  €522 million).  

UK merchanting sales for the year to the end of October are up 6%, compared to 5% to the end of June.   While Irish merchanting sales continued to fall, the rate of decline continued to ease as the year progressed.

The Group's retailing businesses, operating in Ireland, recorded a fall in sales of 7% in the year to October, similar to the performance in the first half of the year.  Group manufacturing sales were down 3% in the year to end October, relative to a decline of 7% in the first half.

The Group's profitability in Quarter 3 was well ahead of last year and this trend has continued into the fourth quarter.  In the merchanting division, there was a significant improvement in UK profits and the Irish business returned to breakeven.  Retailing has operated profitably and losses in manufacturing were well below last year.  Grafton's financial position remains strong with good liquidity and positive cash flows from operations.  A good base has been established from which renewed growth in earnings can be generated over the coming years as market conditions normalise.

Ends.

18^th November 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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