Construction supply giant Grafton has announced disappointing half-year sales figures, with almost 50% wiped off year-on-year performance.

The fall in profits has resulted in 300 jobs losses, group boss Leo Martin confirmed.

The materials and DIY group conceded it had been hit by falling demand in the housing market across Ireland and the UK.

Pre-tax profits for the first six months of 2008 were €53.4m, a mere fraction of the €106.4m generated during the same period last year.

Revenue fell 11% to €1.44 billion and adjusted earnings per share almost halved at 20.6 cent.

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Executive Chairman Michael Chadwick has described the first half of 2008 as the "most challenging trading condition in over 15 years".

And there is no sign of improvement on the horizon, according to the group.

Grafton's Irish operations experienced a slump in merchanting business, while faltering consumer confidence and unfavourable physical weather conditions impacted its DIY outlets.

Turnover in Ireland dropped by around 16%, brining revenues down to €530.5m.

Irish Profits fell to 60%, generating €24.3m

In its retailing business, which includes Woodie's, turnover was down 8% to €154.6m.

Leo Martin confirmed around 300 staff had been laid off in the first six months, and insisted it was impossible to predict if more jobs cuts would occur during the rest of 2008.

Grafton's UK business turnover dropped 7.4% to €907.4m.

However, there was a 6.5% increase when currency movements were factored in.

The group's UK profits fell 24% to €48.6m.

The share purchase payment level will remain at 10 cent per share, according to the firm.

(PR/JM)