Trading Update

RNS Number : 1189X
Marshalls PLC
08 January 2014
 



 

 

 

Trading Update: 8 January 2014

 

Trading Performance

 

Marshalls' revenue from continuing operations for the year ended 31 December 2013 was up 2 per cent at £306 million (2012: £301 million) and compares with a 4 per cent reduction at the Half Year. Revenue for the six months to 31 December 2013 was up 9 per cent compared with the second half of 2012.  Growth has been seen in the second half in Public Sector and Commercial and in Domestic with both end markets performing well.  Current Group trading continues to be in line with expectations.

 

Sales to the Public Sector and Commercial end market, which represent approximately 63 per cent of Marshalls' sales, were up 1 per cent for the year, on a continuing basis, compared with 2012 reflecting the anticipated improved market conditions in the second half.  

 

Sales to the Domestic end market, which represent approximately 32 per cent of Group sales, were also up 1 per cent compared with the prior year. The survey of domestic installers at the end of October 2013 continued to strengthen and revealed order books of 11.0 weeks (2012: 8.7 weeks) notwithstanding the increased activity of the last six months. Although the GfK's Consumer Confidence index remains negative, it is significantly improved from this time last year.

 

Sales in the International business have increased by 23 per cent in the year ended 31 December 2013. Continued progress is being made in developing the International business and, despite difficult trading conditions in Western Europe, underlying sales activity levels continue to be encouraging.

 

Cash realised from the sale of the Aggregates businesses and continued control of inventory and capital expenditure has resulted in a reduction in year end net debt to £36 million (2012: £63 million).

 

Outlook

 

The Construction Products Association's Autumn Forecast predicts growth of 2.7 per cent in 2014 and 4.6 per cent in 2015.  As the economy continues to recover, greater emphasis will be placed on the further development of the Marshalls' brand across all aspects of hard landscaping.

 

Marshalls continues to focus on product innovation and service delivery initiatives to drive sales growth in all its end markets in order to benefit from the operational and financial flexibility that has been built into the Group over recent years. The Group is well placed to improve trading margins and deliver growth. Street Furniture, Landscape Water Management and Internal Natural Stone Flooring continue to be seen as growth areas, in addition to the commitment to Home, Rail and Retail.

 

The next update will be the Preliminary Results Announcement on Wednesday 26 March 2014.

 

Enquiries:

 

Martyn Coffey

Chief Executive

Marshalls plc

01484 438917

Ian Burrell

Finance Director

 

Marshalls plc

01484 438917

Jon Coles

 

Brunswick Group

0207 404 5959

Simon Maine

 

Brunswick Group

0207 404 5959

 

8 January 2014

 

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 2012.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCFMGGMVNKGDZM

Companies

Marshalls (MSLH)
UK 100

Latest directors dealings