Trading Statement

Marshalls PLC
6 July 2001



MARSHALLS PLC

TRADING STATEMENT - SIX MONTHS TO 30 JUNE 2001


The Board of Marshalls Plc have decided that in the future a trading
statement will be issued shortly after the end of the half and full year as
part of best practice in shareholder communication.  The notification to
shareholders will give a report on general trading conditions during the
period and the resulting sales by Division.

GROUP OVERVIEW

Following a weak first quarter, activity picked up significantly in the
second quarter, particularly in the Landscape Products Division where sales
were up 11 per cent.  As a result, Group sales in the six months to 30 June
2001 at  £169m were 6 per cent ahead of the same period last year.

We have previously indicated that the anticipated improvement in operating
profits is expected to be concentrated in the second half.  The second half
will also include a contribution from Stancliffe Stone, the recently
announced acquisition.  Only modest profits from property disposals are
expected this year compared with the significant contribution last year.  The
Group anticipates operating profits before reorganisation and goodwill
amortisation in the first half to be marginally lower than the comparable
period in 2000.  However, we expect the momentum of the second quarter to
continue in the second half.

LANDSCAPE PRODUCTS DIVISION

This Division, which represents 77 per cent of the Group, had sales of £130m,
5 per cent ahead of last year.  Trading in the first three months was very
subdued, however, better weather in April and over the Easter Bank Holiday
saw volumes lift substantially.  This positive trend continued throughout May
and June and sales in the second quarter were 11 per cent above 2000.  The
operating profit in the first half will be similar to last year due to lower
sales in the first quarter adversely affecting production and distribution
efficiencies.

There is no doubt that pent up demand exists, especially in the domestic
sector of the market which is why we expect to benefit further in the second
half of the year.

CLAY PRODUCTS DIVISION

The Division increased sales by 1 per cent to £15m in the first half,
compared with an estimated 8 per cent decline in industry volume.  A change
in product mix led to a reduction in gross margin.  The operating profit
impact has been mitigated by the benefits achieved from the overhead
reduction and efficiency improvement exercise.  It is expected that operating
profits in the first half will therefore be close to last year.

EMERGING BUSINESSES DIVISION

Sales increased in the first half by 9 per cent to £24m and now represent 14
per cent of Group sales.  Although like for like sales were up 3 per cent,
there was a deterioration in product mix.  Those businesses most dependent on
commercial and Local Authority developments where many projects are delayed
experienced a decline in volumes.  This was particularly so in the case of
Natural Stone.  Despite the contribution from the new Street Furniture
acquisition, the first half profits from this Division will be below last
year.

CHAIRMAN'S STATEMENT

Christopher Burnett, Chairman said: 'After a difficult first quarter, trading
conditions improved significantly in the second quarter, and if sustained, we
would expect a much stronger performance than last year in the second half'.

The Interim results for the Group will be announced on Thursday 6 September
2001.


Enquiries:


Christopher Burnett,   Chairman, Marshalls Plc          01422 306400
Ian Burrell,           Finance Director, Marshalls Plc  01422 306400

Jon Coles                       Brunswick Group         020 7404 5959
William Cullum                  Brunswick Group         020 7404 5959