LONDON (ShareCast) - (Sharecast News) - Building materials distributor and DIY retailer Grafton said on Wednesday that trading in the year to mid-March was broadly in line with its expectations and that many of its branches will return to more extended operations next week.
Grafton said its branches generally operated at close to normal levels of activity in the run-up to mid-March, with the impact of Covid-19 becoming visible over the second half of the month and intensifying after the introduction of government restrictions.

The majority of its UK distribution branches and manufacturing plants were closed on 24 March and the distribution business in Ireland was "significantly" scaled down on 28 March. On the same date, trading in the Woodie's DIY, Home and Garden business was suspended except for online transactions.

In the Netherlands, construction activity has largely continued and the company is currently trading at around 90% of anticipated revenue. Meanwhile, the UK distribution business is trading at about 10% of normal volumes from the provision of materials for emergency supplies and essential projects. Grafton said many of its branches will return to more extended operations from 4 May, gradually expanding their offering.

Leyland SDM continues to operate most of its branches in Central London on a collection basis, while the Irish distribution business is trading from all branches during restricted trading hours and is operating at about 15% of normal volumes.

Grafton said it is availing of job retention scheme arrangements for almost 9,000 colleagues in the UK and Ireland out of a total workforce of about 11,000.

Chief executive Gavin Slark said: "Grafton has a strong and geographically diverse portfolio of brands and very experienced management teams who are focused on protecting the Group's businesses and the interests of all stakeholders. The actions that we are taking are to ensure that we emerge from the crisis as a strong and vibrant business."

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