Trading Statement

Marshalls PLC 06 July 2007 Trading Statement: Six Months to 30 June 2007 Marshalls plc, the specialist Landscape Products Group, is providing the following trading update for the six months to 30 June 2007. Trading Performance Marshalls' revenue from continuing operations in the six months to 30 June 2007 was £210 million (2006: £198 million), an increase of 6 per cent, and included £4 million from acquisitions. Revenue from continuing operations, on a like for like basis, was up 4 per cent. Like for like sales to the Public Sector and Commercial market, which represent half of Group revenues, were 6 per cent ahead of 2006. There continues to be good demand in this market. Like for like sales to the Domestic market, also representing half of Group revenues, were 3 per cent up on the prior year. The most recent survey of domestic installers' average order books was 9.7 weeks compared with 9.5 weeks at the same time in the previous year. Group Developments Development of the business has continued during the half year with an investment of £11 million in three bolt-on acquisitions in addition to continuing and development capital expenditure. In terms of acquisitions, we have increased the geographical coverage of our aggregates business with an acquisition in South West England. We have expanded our street furniture product offer with the addition of Ollerton which produces a range of high quality and widely specified seating systems. We have also expanded our market leading natural and reconstituted stone walling offer through an acquisition which will increase our geographical coverage of walling products into Scotland. We have increased consented aggregate reserves by 13.8 million tonnes, including 7.0 million tonnes through acquisitions, and increased consented block stone reserves, for walling and paving, by 5.0 million tonnes through acquisitions. Our investments in organic developments include the expansion of our Premier Mortars business which supplies ready to use mortar for the housing and commercial building markets. We have also continued the development of a sand and gravel deposit close to Manchester which will commence operations in the fourth quarter of this year. We are also opening our showpiece Drive & Garden Transformation Centre in Enfield, North London, bringing the number of Centres to four. We plan to open six more Centres in the second half of the year. Further progress has been made with the sale of surplus property. This is expected to contribute profits in the first half sufficient to cover the one-off revenue costs associated with the above developments and the continuing consumer initiative start up costs. Our sponsorship of the Royal Horticultural Society's Chelsea Flower Show in May was very successful and received a daily average of 3.8 million television viewers, through the BBC's coverage, with Marshalls receiving full verbal and visual credits throughout the programming. It provided an opportunity to showcase our sustainability, both social and environmental, and to demonstrate our economic credentials. The Show enabled us to promote the brand and provided a platform for the launch of our National Garden Design and Installation Service. The interim results of the Group will be announced on Friday 7 September 2007. Graham Holden, Chief Executive, commented: 'The first five months were busy with good momentum in both the Domestic and the Public Sector and Commercial markets. Weather conditions in June have held back sales during this important month, however, underlying demand remains good in both markets and our order books are encouraging. We are also continuing to invest in our medium to long term development plans and we have made further encouraging progress during this period.' Enquiries: Graham Holden Chief Executive Marshalls plc 01484 438900 Ian Burrell Finance Director Marshalls plc 01484 438900 Jon Coles Brunswick Group 0207 404 5959 Kate Miller Brunswick Group 0207 404 5959 Note to the Editor: About Marshalls Established in the late 1880s, Marshalls is the UK's leading manufacturer of superior natural stone and innovative concrete hard landscaping products, supplying the construction, home improvement and landscape markets. Marshalls provides the product ranges, design services, technical expertise, innovative ideas and inspiration to transform gardens, drives and public and commercial landscapes. Marshalls operates from 12 regional manufacturing and distribution centres and also from an increasing number of Drive & Garden Transformation Centres throughout the UK. Marshalls also operates an increasing number of quarries. Marshalls is committed to quality, including environmental best practice and continual improvement in health and safety performance for the benefit of its almost 3,000 strong workforce. Marshalls is the official sponsor of the Royal Horticultural Society's Chelsea Flower Show and has recently launched its own National Garden Design and Installation Service. 6 July 2007 This information is provided by RNS The company news service from the London Stock Exchange

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Marshalls (MSLH)
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