Net debt down by a quarter as chairman vows to focus on cost control

Plumbers and builders merchant, Grafton Group, announced a profit fall of 78% in its preliminary end of year statement for 2008; the 鈧�235.8m in 2007 fell to 鈧�64.1m this year. Demand slowed mid-year, the firm said, although energy-saving materials were sought after.

Revenue was from 鈧�3.21bn to 鈧� 2.67bn over the year, a fall of 16.6%.

Financial managers highlighted net debt reduction for the Anglo-Irish firm based in the UK. This was down by around a quarter from 鈧�435.6m to 鈧�114.8m. The firm was 50% geared with cash flow and a cash balance of 鈧�225m.

Executive chairman, Michael Chadwick, vowed to keep the balance sheet as strong as possible: 鈥淚n the current year, we will maintain our focus on cost control, operational efficiencies and cash generation and implement deeper cuts to overheads where demand continues to contract.鈥�

The firm blamed constant currency volatility for 8% of its decline in turnover and the heavy snow in January and February for adding salt to the wound of 鈥渄ifficult economic circumstances.鈥�

Topics