Irish building materials group Heiton Group confirmed today that sales slowed significantly in the second half of 2001 as the group reported a fall in first half pre tax profits.
In the half year to October 31st 2001, Heiton posted a pre tax profit of €10.31 million, down from €11.80 million, sales rose 17 per cent to 224.8 million.
Operating profits fell 11 per cent to €12.3 million, while earnings per share before exceptionals and goodwill dropped by 12 per cent to 18.43 cents.
But the group remains optimistic that construction volumes will improve this year thanks to measures announced in the December budget.
The group also reported good progress in reducing its cost base. Heiton said the cost reduction and rationalisation programme in the Irish market will produce annual savings of €2.8 million, while it will incur a one-off charge of €4 mln.
Atlantic Homecare, Heiton’s retail/DIY business produced buoyant growth, with sales up 60 per cent overall and 14 per cent on a like for like basis, as the group’s branch expansion programme continues to progress.
The Panelling Centre also had a good half, with sales up 22 per cent and like for like sales up 10 per cent.
Chief executive Mr Leo Martin said the results were achieved in challenging operating environments in Ireland and Britain and that economic and sectoral trends have led to a slowing level of sales growth and strong cost inflation with a resultant increased pressure on margins.