Building and DIY merchants Grafton Group said that group revenue fell by 26% to £810.9m in the five months to the end of May from £1.09 billion the same time last year due to the impact of the Covid-19 pandemic.
Grafton, which owns retail brands like Woodies and Chadwicks here, said it had a solid start to the year before experiencing a decline in activity in the second half of March.
In a trading statement, the company said shutdown measures in place during April in Ireland and the UK lead to a decline in group revenue of 80% in the month compared to the same month last year.
The easing of trading restrictions in May permitted the majority of group locations that were closed in March to either fully or partially reopen through the month.
But the company said the overall level of trading during the short period since reopening, while encouraging, was influenced by a range of factors including pent-up demand and may not be indicative of ongoing activity levels.
"The group remains focused on appropriately managing its cost base as restrictions ease and trading returns to a more sustainable level," it stated.
Grafton's Woodie's business here reopened on May 18 to a surge in demand that saw revenue for the two-week period to the end of the month "comfortably" exceed the level achieved for the full month of May 2019.
"Sales of garden furniture, barbecues, shrubs and plants and exterior paint and woodcare products were exceptional, supported by pent up demand and very favourable weather conditions," Grafton said.
Half of the Chadwicks distribution branch network here remained open during the lockdown for essential deliveries to support health and public sector projects and to provide emergency supplies to businesses and homes.
The business also fully reopened on May 18 in the first phase of the Government's roadmap for reopening the country and operated at two thirds of prior year revenue for the month.
It noted that demand was largely driven by residential renovation, maintenance and improvement projects with new home build activity expected to remain subdued.
The company's UK distribution business also traded at about half the previous year's level in May on an improving trend as the month progressed.
Grafton said that in the absence of a reintroduction of measures to control the spread of the virus, it expects to build on progress recorded in May over the coming months as trading returns.
"In view of the continued uncertainty over the impact of Covid-19 on economic and construction activity generally, financial guidance for the year ending 31 December 2020 will remain suspended at this stage," the company added.
Gavin Slark, Grafton's chief executive, said the restrictions introduced to contain the spread of Covid-19 had a significant effect on trading since the second half of March.
"While there are many challenges to be overcome in the months ahead, we are encouraged by the early trading indications following the reopening of our businesses in the UK and Ireland," he said.
"Grafton is in a strong financial position and, with a resilient portfolio of businesses, will emerge from this crisis well positioned for future growth," the CEO added.
