Grafton Group plc has announced a 72.8% fall in profits before tax in its final results for the 12 months ended December 31, 2008.
Grafton, which is a major operator in the UK builders merchant market and the leading merchant and DIY business in Ireland, says that pre-tax profits were €64.1m for 2008, against €235.8m in 2007. Revenue was down to €2.67bn from €3.21bn in 2007 – a fall of 16.6%.
In the year under review, 63% of turnover was generated in the UK and 37% in Ireland.
The company maintains that it is optimising its cash flow in “challenging conditions”.
“We are taking actions proportionate to the challenges faced in the UK and Irish markets. In the current year we will maintain our focus on cost control, operational efficiencies and cash generation and implement deeper cuts to overheads where demand continues to contract,” said executive chairman Michael Chadwick.
