Trading Statement

Marshalls PLC
07 January 2004


                                                                  7 January 2004

                                 Marshalls plc
                               Trading Statement
                       Twelve Months to 31 December 2003

Sales in the twelve months to 31 December 2003 were £349 million, 7 per cent
ahead of last year on a like for like basis. The Group expects profit before
tax, on the same basis, to be comfortably ahead of 2002 and in line with market
expectations. These results exclude our Flooring business that was sold in
November 2002 with sales in the eleven months of £16.5 million.

All Divisions achieved sales growth. Landscape Products increased by 7 per cent,
Clay Products by 6 per cent and Natural Stone by 14 per cent.

GROUP OVERVIEW

The Group continued to experience good trading conditions throughout the second
half in the domestic, commercial and public sector parts of the business. This
was particularly encouraging given the very strong trading levels we enjoyed in
the second half of 2002. The order books of our Installers continue to reflect
strong consumer demand for our products. Equally the immediate outlook in the
commercial and public sectors remain positive.

LANDSCAPE PRODUCTS DIVISION

The Division had sales of £289 million, 7 per cent ahead of last year. Our sales
continue to benefit from the investment that we are making in marketing the
Marshalls brand, backed by a comprehensive programme of new product development,
and outstanding customer service. In the year stocks reduced by £4 million.

CLAY PRODUCTS DIVISION

The Division increased sales by 6 per cent to £32 million in the full year.
After a poor start to 2003, which was explained at the half year, sales in the
second half were 8 per cent ahead of 2002. The outlook is encouraging with
Industry stocks at historically low levels, and demand stronger than it has been
for some years. Stocks in the Division have been reduced by over £2 million in
the year.

NATURAL STONE DIVISION

In the full year sales in the Division at £28 million were 14 per cent ahead of
2002. Included in these numbers, however, is an acquisition we made at the very
end of last year accounting for 8 per cent of this growth.

MANAGEMENT

As previously announced, with effect from 1 January 2004, Graham Holden, Chief
Executive of the Landscape Products Division, became Group Chief Executive.
David Sarti, who was previously Operations Director of that Division, has been
appointed Managing Director of Marshalls Landscape Products.

Christopher Burnett will remain Chairman for the time being in order to ensure a
smooth transition and until the Board identifies his replacement.

CHAIRMAN'S COMMENT

Christopher Burnett, Chairman said 'Once again it is pleasing to have achieved
record sales, with the expectation of reporting record profits for the seventh
consecutive year when we announce our 2003 results in March 2004. In a low
inflation environment sales growth of 7 per cent is very pleasing. The
improvement in profitability that flows from this result is underpinned by our
programme of capital investment amounting to £100 million in the past three
years. With the other actions we are taking in our relentless drive to lower
operating costs, together with our marketing and development programmes, we are
confident of maintaining our market leadership position.

The Group which comprises strong, focused and complementary businesses is in
extremely good shape. A very strong balance sheet also enables us to look to the
future with confidence.'


The preliminary results of the Group will be announced on Friday 5 March 2004.

Enquiries:

Christopher Burnett    Chairman         Marshalls plc      01484 438900
Graham Holden          Chief Executive  Marshalls plc      01484 438900
Ian Burrell            Finance Director Marshalls plc      01484 438900

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





                      This information is provided by RNS
            The company news service from the London Stock Exchange