LONDON (ShareCast) - (Sharecast News) - Building materials supplier Grafton Group posted a decline in first-half profit and revenue on Thursday as it took a hit from the Covid-19 pandemic but the company was more optimistic about the outlook.
In the six months to the end of June, adjusted pre-tax profit slumped 72% to £24.8m on revenue of £1.06bn, down 29% from the first half of last year. On a statutory basis, pre-tax profit fell 76% to £20.5m.

The company did not declare an interim dividend, having paid 6.5p a share the year before.

Grafton said the coronavirus pandemic and the measures taken to contain it had a "significant" impact on its businesses. Trading across the group was broadly in line with expectations until the second half of March, when the Covid-19 lockdown was implemented.

"The impact of Covid-19 on trading over the remainder of the first half varied by country and market and was influenced by the nature and duration of the lockdown measures adopted," it said.

Still, Grafton struck a more upbeat note on the outlook, saying it was emerging from lockdown in a strong position and that it had seen an encouraging start to the second half. It said there had been a strong recovery in repair, maintenance and improvement markets across all of its geographies and highlighted an "exceptional" performance from its Woodie's DIY business following 51 days of suspended trading.

Chief executive officer Gavin Slark 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."

At 1025 BST, the shares were up 5.6% at 788.50p.

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