Trading Statement

RNS Number : 9461Z

Marshalls PLC

16 January 2020

 

16 January 2020

LEI: 213800S21IFC367J5V62

Pre-Close Trading Update

Trading Performance

Group revenue for the year ended 31 December 2019 was up 10 per cent to £542 million (2018: £491 million). Excluding the impact of Edenhall, which was acquired in December 2018, revenue grew 3 per cent.

Sales in the Public Sector and Commercial end market, which represented approximately 69 per cent of Group revenue, were up 15 per cent compared with the prior year period. The performance of Edenhall has been strong and the integration plan is substantially complete.

Sales in the Domestic end market represented approximately 26 per cent of Group revenue and were flat compared with 2018. These results are ahead of the overall Domestic market in 2019. The survey of domestic installers at the end of October 2019 revealed order books of 10.9 weeks (2018: 10.8 weeks) which compared with 11.5 weeks at the end of June 2019. The Domestic market was softer in the second half and suffered from the poor weather. However, continued execution of the 2020 Strategy more than compensated by improving Group margins.

During the year, the Group launched its new 5 year Business Strategy. The objective continues to be to deliver sustainable growth, whilst maintaining a strong balance sheet with a flexible capital structure and a clear capital allocation policy.

Dividend

The 2019 interim dividend of 4.70 pence per share, announced on 15 August 2019, was paid on 4 December 2019 to shareholders on the register at the close of business on 18 October 2019.

Outlook

The Board confirms it is confident of meeting its 2019 expectations.

Looking ahead, the outcome of the UK General Election in December 2019 has created a more certain political environment and the underlying indicators in the New Build Housing, Road, Rail and Water Management markets remain supportive. The Group continues to outperform the Construction Products Association's ("CPA") growth forecasts.

The Group's Business Strategy is underpinned by strong market positions, focused investment plans and an established brand.

The Board intends to issue its full year Preliminary Announcement on 12 March 2020.

Enquiries:

Martyn Coffey	Chief Executive	Marshalls plc	[phone]
Jack Clarke	Group Finance Director
Andrew Jaques		MHP Communications	[phone]
Charlie Barker

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 its own quarries and manufacturing sites throughout the UK, including a national network of manufacturing and distribution sites, and has operations in Belgium and sales representation in other international markets. As a major plc, Marshalls is committed to quality in everything it does, including the achievement of high environmental and ethical standards and continual improvement in health and safety performance.

Forward-Looking Statements:

Any statements in this release, to the extent that they are forward-looking, are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the markets in which Marshalls operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. More information about the factors that may affect Marshalls' performance is contained in the Annual Report to shareholders for the year ended 31 December 2018.

 

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