Shares in building materials and DIY group Grafton fell sharply in Dublin today after a trading update showed that economic weakness was continuing to affect its Irish business.
The update prompted some stockbrokers to revise their view of the group's outlook.
Grafton said group turnover in the first six months this year was up slightly compared with a year earlier, from €979m to €997m. Its performance was helped by better weather conditions early in the year, but the rate of growth slowed in the second quarter.
Grafton said UK demand was resilient, with average daily turnover up 4.7%, but Irish turnover fell by 6% from a year earlier.
The company said spending on housing work and DIY in Ireland was lower due to general weakness in the economy, reflecting a decline in incomes and falling employment levels.
Grafton said the trading environment in its main markets was proving slow to recover to more normal conditions, as weak mortgage lending and low levels of consumer confidence continued. But it added that it continued to 'significantly improve' its performance from the historically low levels of the recession.
Shares fell 8.7% to close at €3.05 in Dublin this afternoon.
