Buildbase’s parent company Grafton Group plc says it is “well placed” to deal effectively with the challenging trading environment in the UK and Ireland.
The group’s UK like-for-like sales declined by 4.5% in May and June, and by 2% for the half year to June 30.
But Grafton said its UK merchanting businesses were primarily into the more resilient RMI market, with only a small exposure to the new housing sector.
The group is taking steps to improve productivity, reduce costs and maximise synergy benefits. This includes acclerating the integration of large business units built up and acquired in recent years.
It also said its balance sheet remained financially strong, with cash deposits of €100m and a further €100m of committed and undrawn bank facilities.
“Acquisition activity is likely to be at lower levels than in previous years until there is evidence of an improvement in the group’s markets,” Grafton said.
The company said it remained “confident” about the long-term fundamentals and underlying value of its businesses.
