Grafton Group PLC (LON:GFTU) said the outlook remains uncertain due to social distancing measures, though revenue in the period between July 1 and August 16 rose 3.8%.
The distributor said an increase across the retailing and in Irish distribution business lines was offset by declines in manufacturing and UK and Netherlands distribution.
The FTSE 250 group is considering whether it can pay the suspended second interim dividend for 2019 and a full year dividend for 2020 if trading continues to improve.
Easier restrictions in the UK saw a recovery in the building materials firm’s distribution and mortar manufacturing businesses in May and June that was sustained in July and August, though cautious consumer sentiment is going to influence the housebuilding and housing markets.
In Ireland, the Chadwicks and Woodie's businesses have in recent months outperformed the prior year despite economic activity remains below pre-COVID-19 levels.
The activity levels of the Isero and Polvo businesses in the Netherlands is expected to remain dampened by a decline in exports and a moderation in household spending.
In the six months to June 30, revenue slid 29% to £1bn for profit before tax down 76% to £20mln. Net debt was cut to £479mln from £540mln.
“Grafton is emerging from the lockdown in good shape and consensus expectations for financial year 2020 will have to increase materially; by over 50% in our estimation, though it’s probably too early to see material changes to financial years 2021 and 2022,” Peel Hunt commented.
Shares jumped 8% to 807.44p on Thursday morning.