DIY and builders' merchants chain Grafton said this morning it is planning a number of acquisitions and cost synergies to offset a reduction in profits due to weakness in its main markets in Ireland and the UK.
Grafton said group turnover during the four months to April 30th was down 8 per cent at €944 million, compared with the same period the previous year and the group's Irish sales were down 16 per cent.
As a result pretax profit has fallen "significantly" over the period, the company said in a statement, without giving details. This decline also reflects "the adverse translation impact of a 12 per cent decline in sterling against the euro", Grafton said.
Each 1 per cent drop in the British pound reduces profit by about €1.25 million, the company has said. Approximately half of Grafton's profit comes from the UK, where it said sales rose 10 per cent.
It said the sharp fall in housing starts and completions in Ireland has "as expected, led to a more difficult trading environment for the Irish merchanting business". It said non-residential construction remains strong.
Grafton will hold its annual general meeting in Dublin this morning.
At 8.35am Grafton shares were down 3 per cent at €5.25.
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