Trading Statement

Marshalls PLC
07 January 2008




                 Trading Statement: Year Ended 31 December 2007


Marshalls plc, the specialist Landscape Products Group, is providing the
following trading update for the year ended 31 December 2007.


Trading Performance

Marshalls' revenue from continuing operations for the year ended 31 December
2007 increased 7 per cent to £403 million (2006: £378 million). On a like for
like basis, revenue from continuing operations was up 4 per cent at £393 million
(2006: £378 million). Acquisitions contributed £10 million to Group revenue.

Like for like sales to the Public Sector and Commercial market, which represent
over half of Marshalls' sales, were 7 per cent ahead of 2006. Like for like
sales to the Domestic market were slightly ahead having been particularly
adversely affected by the unusually wet weather in June and July.

Marshalls will be announcing its results for the year ended 31 December 2007 on
7 March 2008 and expects these results to be in line with expectations.


Group Developments

We continue with our strategy of investing for growth and productivity
improvement. During 2007, we have invested £12 million of capital in
acquisitions, particularly for the Public Sector and Commercial market, and a
further £14 million of capital in initiatives to boost organic growth. This
investment is additional to ongoing replacement and improvement expenditure.

In addition, a number of our growth initiatives, particularly Landscape
Installations, involve significant up front revenue investment which we continue
to charge against profit.


Natural Stone

Much of the above capital investment has been to expand our Natural Stone
businesses. We have acquired and invested in a business operating in North East
England and Scotland to widen our geographical coverage in sandstone walling and
reconstituted stone walling. We have also invested to develop a walling stone
plant in West Yorkshire.

We have extended our geographical coverage in aggregates with the acquisition of
a quarry in the South West, direct capital investment to develop a sand and
gravel deposit near Manchester, and the completion of an additional investment
in West Yorkshire.

We have also doubled the number of facilities around the country for our niche
Premier Mortars business which supplies ready-to-use mortar in small quantities
direct to building sites.


Street Furniture

We have acquired a small business supplying highly specified seating which has
been integrated into our existing Street Furniture business.

Landscape Installations

Most of the revenue investment has been to develop our Landscape Installations
business. Our fourth Display Centre for gardens and driveways opened in Enfield
in August. A further Display Centre in Oldham opened in November and one in
Bicester opened in December 2007. We expect to have a total of nine operational
Display Centres by Spring 2008.


Outlook

Based on recent contract awarded data, the outlook for 2008 in the Public Sector
and Commercial market is positive. In the Domestic market, installer order books
from the latest survey at the end of October 2007 were an encouraging 9.9 weeks
(2006: 9.1 weeks).



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

7 January 2008




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