Grafton Group’s UK merchanting business saw its operating profits fall to €12.8m during the first half of 2009, down from €49.9m a year earlier.
Turnover dipped 26% to €647m from €879m in the division, which comprises Buildbase, Jacksons, Plumbase and other specialist brands.
Grafton said the UK market showed some signs of stabilisation towards the end of the half year, with the decline in average daily sales “moderating a little in May and June”.
Staff numbers were reduced by 321 during the period, following 800 job cuts during the second half of 2008.
However, Grafton said significant progress was made in securing new projects and contacts under the partnering initiative which co-ordinates a response to the supply of materials to local authorities, housing associations and national contractors.
And its 28-strong Selco trade-only warehouse format business performed “resiliently”.
Grafton described recent economic indicators as encouraging, while sound long-term fundamentals in the repair, maintenance and improvement market, “should over time see a return to growth and recovery”.
UK business accounts for two-thirds of Ireland-based Grafton’s turnover.
