Building materials and DIY group Grafton has reported a slight increase in turnover in the first ten months of this year, with growth in the UK offsetting further declines in its Irish business.
But its shares closed 5.2% lower at €2.60 in Dublin this evening after its full-year outlook fell short of expectations.
In a trading update, Grafton said turnover for the ten months was €1.73 billion, compared with €1.7 billion in the same period last year.
UK turnover in the period was up 4.8% in sterling terms, though Grafton says the pace of growth slowed in September and October. The UK business accounts for 70% of group turnover.
In Ireland, turnover in the ten months was down 7.7% from a year earlier, while the drop in the DIY retailing business was 5.7%. In both cases, the declines have accelerated in the second half of the year. Manufacturing turnover increased by 6.4%.
Grafton says economic uncertainty, low consumer confidence and tight lending conditions are continuing to limit growth in volumes in the UK market. In Ireland, it says, the economic environment is likely to make trading conditions tough "for some time ahead".
The group has forecast a trading profit of €52m to €55m for the full year, up only slightly from €50.6m in 2010. This is lower than analysts had been expecting.
