Despite €25m sales drop in January due to severe weather, UK trading improves with like-for-like growth in recent months.
The builders merchant and DIY group, which operates the Buildbase and Plumbase chains in the UK and Ireland, saw sales dip €25m in January compared with 2009, with trading "badly affected" by adverse weather conditions.

However, despite the difficult start, trading in the UK, which accounts for 70% of group turnover, picked up with like-for-like turnover growth in each of the following months to April 2010.

Irish operations, which include Woodies DIY and Atlantic Homecare, continued to trade below 2009 levels but the company stressed that the rate of decline has reduced.

Grafton explained in its interim management statement released today that it had seen a strong resurgence in new house building in the UK and is optimistic that the positive effects of this on the business will continue.

The group posted a turnover of €617m for the four months to the end of April - down €22m on the same four month period in 2009.

Grafton has also reduced its cost base, incurring further rationalisation costs of €1.7m during the first three months of the year, which it expects to result in annualised savings of €4.2m.