Building materials supplier and DIY company Grafton Group said its profit before tax for the six months to the end of June sank by 76% while its revenues dropped by 19% due to the Covid-19 pandemic.
Grafton Group said revenues from continuing operations for the six months fell by 19% to £1.058 billion from £1.314 billion the same time last year.
Its profit before tax slumped by 76% to £20.5m from £84.4m, while its adjusted operating profit from continuing operations fell by 64% to £35.1m from £97.2m.
Grafton said its outlook remains uncertain due to the unprecedented situation caused by the Covid-19 pandemic, but reported an "exceptional performance" by Woodie's following 51 days of suspended trading.
Grafton said it had opted not to propose a dividend for the first half of 2020 but said it would consider paying one for the full year.
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Gavin Slark, the company's CEO, said Grafton's resilience, market positioning and geographic diversity together with its low debt and strong liquidity leaves the group well positioned for continuing progress.
"We are very encouraged by the performance of the Group in recent months as it emerged in a strong position from the Covid-19 lockdown and based on current trends the Group should deliver a similar level of adjusted operating profit in the second half to the comparable period last year," the CEO added.
Grafton said the reopening of the UK economy and relaxation of social distancing measures has seen a recovery in its UK distribution and mortar manufacturing businesses in May and June that was sustained in July and August.
It said the gradual recovery in housebuilding is expected to continue but will remain sensitive to the confidence of households to make long term commitments of this nature, employment prospects after the furlough scheme ends and the availability of mortgage finance.
Grafton said the recovery in the UK housing Renovation Maintenance Improvement (RMI) market is likely to have benefitted from pent-up demand and an increase in household savings during the lockdown.
In Ireland, although economic activity remains below pre-Covid-19 levels, Grafton said that the Chadwicks and Woodie's businesses have in recent months outperformed the prior year.
"The near-term prospects remain favourable but are sensitive to the possible reintroduction of containment measures that may be needed to control the spread of the virus and the associated impact on unemployment, consumer confidence and spending over the coming months," it added.
