Marshalls PLC
09 January 2006
Trading Statement - Twelve Months to 31 December 2005
Marshalls' revenue from continuing operations, including acquisitions, in the
twelve months to 31 December 2005 increased 9% to £359 million (2004: £328
million). On a like for like basis, revenue from continuing operations was up 1%
at £332 million (2004: £328 million). Acquisitions contributed £27 million.
Sales to the public sector and commercial market, which represent half of Group
revenue, were 4% ahead of 2004 and demand remains robust. Sales to the domestic
sector of the market were down 1% with particular weakness in sales of products
for the DIY market. Installer order books, from the latest survey at the end of
October 2005, were at a satisfactory 8.6 weeks (2004: 10.2 weeks).
The Preliminary Announcement of Group results, which are expected to be in line
with market expectations, will take place on Friday 10 March 2006.
Group Developments
Two acquisitions were completed in the second half of the year. Paver Systems, a
concrete products business which broadens our product range in Scotland, was
acquired for £8.7 million on 2 September 2005. On 2 November 2005 the business
and assets of Stoke Hall Quarry, a natural sandstone reserve in Derbyshire, were
acquired for £3.1 million.
The closure of a production unit at Mansfield which did not form part of our
unique National Manufacturing and Regional Service Centre network was completed
in December 2005. Productivity gains resulting from recent capital investment
had resulted in surplus capacity that is not required.
The sale of one of our surplus properties was also completed in December 2005
for proceeds of £4.4 million. The profit generated by this sale will cover the
additional costs associated with the closure of the production unit at
Mansfield.
Graham Holden, Chief Executive, commented:
'Marshalls is pleased to be announcing a resilient performance in challenging
market conditions, reflecting the breadth of our markets, the product range and
also the considerable investment we have made in productivity improvements, and
the Marshalls brand, over recent years'.
Graham Holden Chief Executive Marshalls plc 01484 438900
Ian Burrell Finance Director Marshalls plc 01484 438900
Jon Coles Brunswick Group LLP 0207 404 5959
Sarah Lindgreen Brunswick Group LLP 0207 404 5959
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