Grafton Group plc, which runs Buildbase merchanting operations throughout the UK, says it has experienced positive effects from a strong resurgence in housebuilding.
The group’s UK merchanting sales grew by 4% in the three months to the end of April, though trading across the group in January was down €25m on a year ago due to the adverse weather conditions.
Group turnover for the four months to the end of April was €617m. down €22m on the first four months of 2009.
“The benefit of the recent return to growth in turnover, the significant reduction in the Group’s cost base and strengthening market positions are being reflected in an improved operating performance by the Group,” Grafton said.
In Ireland, sales continue to be below levels achieved in 2009 but the rate of decline has slowed.
During the first three months the Group incurred further rationalisation costs of €1.7m (three months to March 2009: €4.1m) which will result in annualised savings of €4.2m.
