Profitable trading at Grafton Group’s UK operations during the first half of 2009 helped offset losses in the Irish business, the company said in a trading update.
Grafton, which operates the Buildbase chain, said group turnover for the six months ended June 30 was €990m, 31% down from the €1.4bn recorded a year ago. Second quarter turnover was €520m.
Grafton said low interest rates and steady trend of rising mortgage applications and loan approvals in the UK were “encouraging” in terms of indicating prospects for an improvement in UK markets.
Group merchanting business experienced a 24% turnover decline, while the recent recovery in sterling has “significantly improved” the strength of its balance sheet.
It expects to return to modest levels of profitable trading during the seasonally stronger second half of the year.
