Grafton Group plc, the builders merchants and DIY Group with operations in the UK and Ireland, today issued a trading update for the six months to 30 June 2008 and said that it has entered the second half of the year in a strong financial position with a reducing cost base and a profitable and cash generative business which is well placed to deal effectively with a challenging trading environment in the UK and Ireland at a time of continued uncertainty in the credit markets. Grafton says it remains confident about the long term fundamentals and underlying value of its businesses in the UK and Ireland. Overall sales declined by 16 per cent in May and June in the Irish market and at the same rate for the half year.