DUBLIN: Profits at Grafton Group recovered in the second quarter of 2010, the company said in a trading update today.
"Profits recovered strongly in the second quarter relative to the first quarter of 2010 and the corresponding quarter in 2009," the company said. But turnover for the half year ending 30 June was around £818m, down £9m on the first half of 2009.
In constant currency terms sales growth in Q2 was 1% after a decline in Q1 of 7%. Like-for-like UK merchanting sales were down 2% in Q1 and rose 4% in Q2, as the new housing market strengthened. Irish merchanting sales continue to decline with falls of 22% in Q1 and 10% in Q2.
"The group's financial position continues to be strong with good liquidity and substantial cash flow from operations. The refinancing of the group's debt is progressing satisfactorily and on schedule. It is anticipated that new arrangements will come into effect in the third quarter," the company said.
