Grafton revenue hit by Covid but June 'more resilient' than expected
By Michele Maatouk
Date: Thursday 09 Jul 2020
(Sharecast News) - Building materials distributor Grafton Group posted a decline in revenue on Thursday due to the impact of the coronavirus but said trading in June was more resilient than expected.
In the six months to 30 June, revenues fell to 19.4% to £1.06bn.
However, trading in June improved and was better than expected, with group revenue in continuing operations up 11.4% compared to the same month last year at £247.8m. The company, which owns Woodies and Chadwicks, did warn though that this could be the result of pent-up demand.
Grafton said strong demand in June in its businesses in Ireland and Netherlands and in Selco in the UK was partly offset by a slower pace of recovery in the traditional distribution and manufacturing businesses in the UK.
"While we were encouraged by the improved performance in June, trading during the month is likely to have been influenced by pent-up demand as Covid-19 restrictions were lifted and we remain cautious about revenue trends in the second half of the year," it said.
Grafton said financial guidance for the year to the end of December 2020 will remain suspended "given the continuing uncertainty" in its principal markets.
Chief executive officer Gavin Slark said: "While we face many challenges in the months ahead, we are encouraged by the froup's trading and financial performance in the month of June which represented an important milestone on the road to recovery.
"Grafton is in a strong financial position and our resilient portfolio of market leading businesses is emerging stronger from this crisis and remains well positioned for future growth."
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