Trading Statement

Marshalls PLC
4 January 2002


                                                              4th January 2002

                                MARSHALLS PLC

                TRADING STATEMENT - YEAR TO 31 DECEMBER 2001

Marshalls has experienced strong trading conditions throughout the second half,
and, as a result ended the year with sales of £328 million, 10 per cent ahead
of 2000.  All three Divisions, Landscape Products, Clay Products and Emerging
Businesses, achieved sales growth substantially ahead of that reported at the
half year.

At the time of our Interim results we indicated that the anticipated
improvement in operating profit would be concentrated in the second half.
While Group operating profits before reorganisation and other exceptional costs
and goodwill amortisation in the first six months were marginally lower than
the comparable period in 2000, we expect the full year figure to be
significantly up on last year, and in line with Market expectations.

In 2000, we reported a large exceptional profit of £2.7 million from the sale
of surplus land.  In 2001 exceptional profits from property disposals amount to
£0.3 million.  This, together with reorganisation costs, goodwill amortisation,
and the write-off of pre-paid insurance premiums and irrecoverable insurance
claims of nearly £1 million following the collapse of Independent Insurance
PLC, (which we reported to shareholders in our Interim Report), will reduce the
amount of the increase in the profit on ordinary activities before interest.
Nevertheless, profit at this level should still be ahead of last year.

LANDSCAPE PRODUCTS DIVISION

This Division, which represents 75 per cent of Group turnover, achieved sales
of £248 million for the full year, 9 per cent ahead of 2000.  The pent up
demand that spilled over from the first half, especially in the domestic
sector, came through strongly and has continued right up to the year end.  As a
result, following a 5 per cent increase in sales in the first half, sales
improved by 14 per cent in the second six months.

After reporting Interim operating profits similar to the first half of 2000, we
achieved a significant improvement in the second half to meet our target for
the full year.

CLAY PRODUCTS DIVISION

This Division also experienced stronger sales growth in the second half and
ended the year with sales of £29 million, 3 per cent ahead of 2000, where
Industry brick volumes are expected to have declined again this year by about 3
per cent.  Despite the pricing pressure caused by the Industry volume decline,
we expect the operating profit to be ahead of 2000 due to further benefits from
our profit improvement programme.


EMERGING BUSINESSES DIVISION

The Division had the benefit of a second half contribution from Stancliffe
Stone, our recent acquisition, and therefore ended the year with sales of £51
million, an increase of 17 per cent over 2000.  The like for like sales
increase was 4 per cent.

We announced in our Interim Report that the operating profit before
reorganisation and other exceptional costs and goodwill amortisation showed a
reduction of nearly 15 per cent compared with last year, due to a decline in
our Natural Stone and Drainage businesses.  While this situation has improved
somewhat it has not been possible to make up the shortfall in first half
profits.  However, taking into account the contribution from Stancliffe Stone,
we expect operating profit for the Division as a whole to be at a similar level
to last year.

OUTLOOK

The level of demand for our products remains strong, and in recent months there
has been a noticeable increase in the number of commercial enquiries.  We are
seeing the first signs of an improvement in construction industry activity
arising from Government spending plans.  The domestic part of the business was
strong right up to the year end, and the trade expects good order books going
into the New Year.

The Landscape Products Division has had supply agreements with the three major
builders merchant groups in place for the past three years.  These agreements
were due for renewal and have been the subject of renegotiation over the past
few months.  New agreements have now been concluded, subject to formal Board
ratification on both sides.

CHAIRMAN'S STATEMENT

Christopher Burnett, Chairman said 'The full year operating profit before
exceptionals will be in line with Market expectations reflecting both strong
trading conditions and improved operating efficiencies.  We begin the New Year
anticipating a good trading position and with the added security that our low
level of gearing provides'.

Preliminary results for the Group for the year ended 31 December 2001 will be
announced on Friday 8 March 2002.

Enquiries:

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

Jon Coles, Brunswick Group                            020 7404 5959

END