Grafton revenues fall amid 'challenging' market

(Sharecast News) - Building and DIY supplies group Grafton said revenue fell 4.4% in the first six months of the year amid challenging trading conditions as consumers held back on discretionary spending. Sales came in at £1.14bn between January and June with average daily like-for-like revenue 4.5% lower year on year.

Overall trading in the group's businesses "remained challenging" with average daily like-for-like revenue down 4.5%on the prior year. Grafton said it had "continued to actively manage both our gross margins and cost base in response to market conditions".

"Customers remain cautious with discretionary spending which has resulted in lower investment on home improvements, although there are positive signs emerging of improving consumer confidence," the company said in a trading update published on Wednesday.

The news came as a study by TSB bank also released on the same day showed Britons were putting off renovations or home improvement projects, with overall spending on DIY, electrical and furniture down by 15.5%.

Reporting by Frank Prenesti for Sharecast.com