Mr Michael Chadwick, the executive chairman of Grafton, the building materials group, has declined to comment on what changes are planned for the company's management, despite the retirement of the managing director.

Mr Norman Kilroy has recently retired as managing director after 14 years, though he remains on the company board. However, Mr Chadwick declined to comment yesterday on when he might be replaced. He also refused to comment on the implications of Mr Kilroy's departure for his own position as executive chairman.

Speaking at Grafton's annual general meeting in Dublin, Mr Chadwick said Mr Kilroy was a great servant of Grafton and was virtually "irreplaceable".

He was speaking after a shareholder asked whether the "two- headed" structure at the company would continue into the future.

Mr Chadwick has been executive chairman since 1985, working alongside Mr Kilroy as managing director for most of this time.

Mr Chadwick told shareholders the issue was on the minds of board members.

He said corporate governance had changed radically since 1994 and there was also ongoing change at Grafton.

"I don't feel I can comment any further at this stage," he told shareholders.

Asked about the future structure at the company, Mr Chadwick refused to answer any questions on the matter from The Irish Times. "I have nothing to add," he said.

Earlier, he told shareholders trading in the first quarter was in line with expectations and the group had returned good growth in earnings.

"Buoyant trading conditions persist in Ireland.

"The group's Irish merchandising business continues to benefit positively and this is reflected in good like-for-like sales growth and a further improvement in profits."

He said the group remained confident of continued growth in profits and earnings per share in 2004.

Davy Stockbrokers last night said it was leaving its forecasts unchanged for now.

"Our diluted adjusted earnings per share estimate of 50.2 cents implies earnings growth of almost 14 per cent for 2004."