Builders’ merchants Grafton Group has reported a small increase in revenues in the four months to the end of April, as a tough trading environment and currency fluctuations hit the bottom line.

Revenues rose to €677 million, from €676 million in the same period last year. However UK revenue was reduced by €12 million due to a less favourable sterling/euro exchange rate.

Retail sales in Ireland fell 8.7 per cent due to weaker consumer sentiment and poor weather conditions.

Like-for-like revenues in the group’s UK builder merchanting sector was marginally higher for the four months as activity levels recovered in April following poor weather in April. Irish merchanting revenues also increased 1 per cent, the first increase since 2007.

The group remain cautious about the outlook for the sector given the weak macro-economic outlook in Ireland and lower activity levels in the UK.