Trading Update

RNS Number : 0547Z

Marshalls PLC

07 January 2011

 



Trading Update: 7 January 2011

Marshalls' revenue for the year ended 31 December 2010 increased by 4 per cent to £323 million (2009: £312 million).

Sales to the Public Sector and Commercial end market, which represents approximately 59 per cent of Marshalls' sales, were up 6 per cent and sales to the Domestic end market were up 1 per cent compared to the prior year.

Underlying sales performance in the second half of the year was encouraging, but the poor weather in the last five weeks of the year offset some of the outperformance with an estimated negative sales impact of approximately £5 million.  These exceptional conditions also disrupted manufacturing in Scotland, the North East of England and our quarrying activities.  The estimated operating profit impact from the poor weather was £0.8 million.

Cash management remains a central priority with a continuing focus on stock control and the management of capital expenditure ensuring that net debt at 31 December 2010 was in line with plan at £67 million (2009: £69 million).

Outlook

The Group's recent sales trends indicate that our markets have now stabilised and that our marketing and sales initiatives are delivering positive results.  The short term outlook remains encouraging with good order books and a positive order flow.  In the Domestic end market, installer order books at the end of October 2010 were consistent at 8.1 weeks (2009: 8.1 weeks).  In the Public Sector and Commercial end market it is encouraging that our lead indicator continues to suggest an increase in the level of demand as we move through 2011.  In contrast, the Construction Products Association's latest forecasts, which include the impact of the Comprehensive Spending Review and recent weaker consumer confidence figures, anticipate a 2 per cent fall in construction output in 2011.   

Despite the difficulty in forecasting and the uncertainty as to the likely speed of recovery, the Group has operational flexibility for the medium term and is well placed financially and operationally to respond to changing market conditions.

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 2011

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.

The Group operates its own quarries and manufacturing sites throughout the UK, including a network of regional service centres and 2 National manufacturing and distribution sites.  As a major plc, Marshalls is committed to quality in everything it does, including environmental and ethical best practice 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 the Group 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 the Group's performance is contained in the Annual Report to shareholders for the year ended 31 December 2009.

 

END

 

 

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