Profits at building materials group, Grafton plummeted by 79% in 2009, the firm has announced.

The group posted pre-tax profits of €13.6m for the year ending December 2009 – a substantial drop from the €64m reported in 2008.

The company’s revenues fell 26% to €1.98bn from €2.67bn while basic earnings per share fell to 5.8 cent in 2009 from 32.2 cent in 2008.

Turnover in Ireland tumbled 35% to €638m, with a fall of 20% per cent to €1.34bn also seen in the UK market.

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However, Executive Chairman Michael Chadwick said that sales had stabilised as the year went on.

"Group sales in the second half of 2009 were similar to the first half," he said.

"This stabilisation of sales, combined with the action taken to substantially reduce the cost base and integration benefits in our merchanting business, resulted in improved profitability during the second half of last year. Sales in the first two weeks of January 2010 were affected by severe adverse weather conditions. Since then sales have been close to expectations and last year with good increases into the UK new housing sector."

He continued: "The Group’s strong businesses and financial strength position it to consolidate market share in its key markets. With a lower cost base and more integrated merchanting business, it is well placed to benefit from its operating leverage as markets recover."

(NS/BMcC)