Building materials and DIY group Grafton says its turnover has dropped sharply this year due to difficult economic conditions and the weakness of sterling against the euro.
In a trading update, Grafton said turnover for the first ten months of this year was down 14.5% compared with a year earlier at €2.35 billion. The fall was 6% excluding the impact of the weaker sterling.
In Ireland, turnover was down 18% in the ten months, with Grafton saying that a severe tightening of credit had made the downturn in the property market worse. But it said this had been 'partly offset' by 'reasonable' levels of RMI activity and gains in market share.
Turnover in the Irish DIY business also declined, hit by lower spending and weaker consumer confidence.
Grafton's UK businesses have seen an increase of 1.5% in sterling terms, but Grafton said sales in its repair, maintenance and improvement (RMI) business had fallen 6% in like-for-like terms as a slowdown in spending gathered pace.
But the company said it continued to be profitable and would focus on dealing with the tougher conditions by cutting costs.
Grafton shares closed four cent lower at €2.28 in Dublin this evening.
