In a trading update issued today the group said:

"Overall, the hardware market in the UK/Ireland had a reasonable first half in 2007. There was continued momentum in the new build segment and modest growth in the home improvement market in both countries.

"However, home improvement activity in the UK slowed noticeably in the fourth quarter, with the market down an estimated 5-10% on 2006. In Ireland, whilst building activity in the commercial and leisure markets remained strong, the new build residential market slowed significantly during the course of the year."

It also warned that earnings from the North American market would be far lower next year.

The 2007 full year results are scheduled to be announced on Tuesday, 4 March 2008.