The Huddersfield-based company said its European operations have been hit by the slowdown in the new build market as consumers turn more cautious and they find it harder to get mortgages.

In the UK, housing transactions are significantly lower with mortgage approvals down 46 per cent on last year. The reduction in transactions is likely to hit the home improvement market later in the year as if people haven't moved to a new house they won't carry out any work.

Despite the tough market the group said it is well positioned thanks to its strong market share, low cost sourcing capabilities, strong new product pipeline and focus on customer service.

The group said the PVC windows, doors and conservatories market in the UK and Ireland has been difficult, with over thirty rivals ceasing to trade including two of the top ten companies in the UK.

In Ireland the market has been hit hard by the downturn in residential new build activity. Activity levels have also reduced in Benelux and the Baltics although Scandinavia continues to grow.

In its US business the well publicised difficulties in the housing and home improvement markets continue. In February house prices in the top 20 US cities were 11.7 per cent lower than a year earlier and it is estimated there are over a million more unsold homes than usual.

The US manufactured housing market has been hit hard and output in March fell by 12 per cent.

During the first quarter the recreational vehicle market, which accounts for about 28 per cent of the group's US sales, slowed noticeably as consumers were hit by rising fuel costs and they put off unnecessary expenditure.

One bright spot was sales of architectural hardware which have grown significantly primarily due to the acquisition of Avenco, one of the market leaders in the Irish market. The Carlisle Brass businesses also continued to win market share in the UK.