Skip Navigation

Business

Irish recession still impacting Grafton Group

Irish recession still impacting Grafton Group

Irish recession still impacting Grafton Group

Although trading levels have improved since the beginning of the deep recession in the UK and Ireland, Grafton Group has warned that its key markets are still proving slow to recover.

Group turnover for the first six months of 2011 was €997m, up from €979m in 2010.

In Ireland, turnover for the half-year was down by about 6pc.

The company said it continued to be negatively impacted by challenging trading conditions in the merchanting and DIY markets.

“Spending on housing RMI and DIY was lower due to general weakness in the economy, reflecting a decline in incomes and contraction in employment levels,” said the group in a trading update to the stock exchange.

There was better news in the UK for the firm which owns Woodies DIY. More favourable weather conditions led to an increase of turnover of about 4.7pc.

Demand was resilient in the RMI-focused UK merchanting business against the background of pressure on disposable incomes and consumer spending.

Today's remarks have sent shares in the group down over 7pc today and they are currently trading at €3.10.