Published on 10 - November - 2011
UK brands boost sales at GraftonInterim management statement reveals a 4.8% increase in turnover in the firm's UK merchanting business, while Irish operations report declines.
Group turnover for the 10 months ended October 31 was €1.73bn, compared with €1.70bn in the same period last year. The UK business, which includes the Buildbase, Plumbase and Selco brands and accounts for 70% of turnover, reported a 4.8% increase for the period, as well as growth of 5% in the first half. Average daily UK like-for-like sterling turnover increased by 4% in the 10-month period but moderated to 2% in September and October. This compares to growth of 4.7% in the first half.
Despite the increase, the group said economic uncertainty, poor consumer confidence and tight lending conditions continue to limit growth in RMI volumes in the UK market.
Meanwhile, Grafton's Irish merchanting operations reported a 7.7% decline in turnover for the 10-month period, compared with a 7.2% drop in the half year.
Turnover in the Irish retailing business, which includes Woodie's DIY and Atlantic Homecare, was down 5.7% in the period to October, as the firm states that the economic environment in Ireland is likely "to make trading conditions challenging for some time ahead".
The group added that, due to further delay in the recovery in its sector and the lower operational leverage as a result, it expects full year operating profit, before restructuring and amortisation costs, to be in the range of €52m to €55m, compared with €50.6m achieved in 2010.
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