The Grafton Group announces its results for 2008 with profits down but an overall strong balance sheet on the back of its property portfolio.
Grafton is the fourth largest merchants business in the UK with 426 locations split into 221 builders merchants branches trading under the Buildbase and Jackson brands and 205 plumbers merchanting branches operating under the Plumbase brand.

Overall turnover dropped by 16.6% from €2.67bn in 2007 to €3.21bn in 2008 when 63% of turnover was generated in the UK and 37% in Ireland.

However, in the UK the company saw turnover of £1.34bn, down just 1% from 2007's £1.35bn.

Grafton said it saw demand 'slow substantially' from mid-year UK operating profit which declined by 52% to €68.0m (2007: €142.1m) and by 44% in sterling terms

Operating profit, before adjustments, fell by 55% to €118.6m from 2007's €265.8m

While the company said its assets were 'strong' it was also hit by sterling being devalued 23% during the year knocking the value of its property.

Executive chairman, Michael Chadwick, warned there was more bad news to come

He said:
"Trading in January and February continued to decline, made worse by the heavy snowfall.

"Grafton's businesses has strong market positions and brands in the UK and Ireland and expect to emerge from the current market downturn as more efficient enterprises well placed to take advantage of growth opportunities."