Recovery in UK key to Irish merchants
Published: 19 August, 2009
DUBLIN: Recovery of the UK economy will a key factor influencing the performance of Irish-based building materials suppliers, said Bloxham Stockbrokers.
A recovery in the UK housing activity and low interest rates could help Grafton as would the closure of smaller builders' merchant firms in the UK.
However, analysts warn that Grafton is exposed to possible sterling weakness and its pre-tax profits could drop to €27m this year and €18m next year.
Construction shares performed badly yesterday on the Dublin stock market. CRH dragged the Iseq lower falling by over 3% to €17.51 and Grafton Group closed at €3.13 down almost 8%.