Grafton Group plc has provided a further update on the impact of Covid-19 on its business.
A statement from the group noted that trading in the year to mid-March was “broadly in line with our expectations as branches generally operated at close to normal levels of activity”. However, as the impact of Covid-19 intensified, the majority of the company’s UK merchant branches and manufacturing plants were closed on 24 March and the distribution business in Ireland was significantly scaled down on 28 March. On the same date, trading in the Woodie’s DIY, Home and Garden business (in Ireland) was suspended except for online transactions.
The Grafton Group announcement explained that construction activity has largely continued in the Netherlands where its distribution operations have “successfully implemented physical distancing measures” and reports it is currently trading at circa 90% of anticipated revenue.
In the UK, the company says its merchant businesses are currently trading at circa 10% of normal volumes, “from the provision of materials for emergency supplies and essential projects”.
From 4 May, many of its branches will return to more extended operations and will gradually expand their offering over the coming days and weeks.
Leyland SDM continues to operate most of its branches in Central London on a collection basis. The Irish distribution business is currently trading from all branches during restricted trading hours and is operating at circa 15% of normal volumes though this has been gradually increasing.
The statement continues: “We are taking appropriate actions to manage our cost base while protecting jobs and ensuring that our businesses are strongly positioned for a phased return to trading as restrictions in the UK and Ireland are relaxed. The Group is availing of job retention scheme arrangements for almost 9,000 colleagues in the UK and Ireland out of a total workforce of circa 11,000 in the two countries.”
Gavin Slark, Chief Executive of Grafton Group plc, commented: “Grafton has a strong and geographically diverse portfolio of brands and very experienced management teams who are focused on protecting the Group’s businesses and the interests of all stakeholders. The actions that we are taking are to ensure that we emerge from the crisis as a strong and vibrant business.”
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