UK and Ireland-focused builders merchant group Grafton Group said turnover in Ireland is still declining in 2011, but not as fast as it was.

Group turnover for the four months to 30 April 2011 was €642m, up 4.0% year on year. Average daily UK like for like sterling turnover increased by 5.8%, while the rate of decline in turnover in Ireland moderated to 2.6%, which included growth of 4.6% in the Irish Retailing business; turnover in the Irish merchanting branches had declined by 11.5% in 2010.

The recovery in the mainly residential repair, maintenance and improvement (RMI) orientated UK business, which now accounts for more than 70% of group turnover, has continued this year despite fragile consumer confidence.

Trading conditions in Ireland have remained challenging due to weak demand in the residential RMI market and low levels of activity in the new build markets, the company said.

On the bright side, the increase in turnover and lower cost base as a result of the rationalisation measures adopted in recent years resulted in an improved group operating performance in the period.

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