Trading Update

RNS Number : 4572B

Marshalls PLC

07 January 2015

 



Trading Update: 7 January 2015

Trading Performance

Marshalls' revenue from continuing operations for the year ended 31 December 2014 was up 17 per cent at £359 million (2013: £307 million). Revenue for the six months to 31 December 2014 was up 19 per cent compared with the second half of 2013. The Group continues to experience strong order intake and sales growth in all its end markets.

Sales to the Public Sector and Commercial end market, which now represent approximately 64 per cent of Marshalls' sales, were up 20 per cent for the full year, on a continuing basis, compared with 2013. The Group continues to target those parts of the market where higher levels of growth are expected, such as Rail, Newbuild Housing, Water Management and Street Furniture.

Sales to the Domestic end market, which represent approximately 30 per cent of Group sales, were up 9 per cent for the full year, compared with the prior year period. The survey of Marshalls' c. 1,000 domestic installer teams at the end of October 2014 revealed order books of 11.9 weeks (October 2013: 11.0 weeks).

International revenue has grown by 28 per cent in the year ended 31 December 2014 and is now 6 per cent of expanded Group sales. Focus has been directed to ensure that International operations are better aligned with market opportunities. This resulted in a charge of £2 million in the second half of 2014 in relation to the restructuring of Marshalls NV. Notwithstanding this charge the expectations for 2014 full year results remain unchanged.

Outlook

The Construction Products Association's Autumn Forecast predicts growth in UK market volumes of 4.8 per cent in 2014 and 5.3 per cent in 2015.  The Group continues to increase output to meet growing demand and to deliver benefits from its operational gearing.

The Group remains focused on product innovation and service delivery initiatives to deliver continued sales growth and improve trading margins. Continued emphasis is being placed on the further development of the Marshalls' brand across all of the Group's businesses.

Enquiries:

Martyn Coffey	Chief Executive	Marshalls plc	[phone]
Jack Clarke	Finance Director
Jon Coles		Brunswick Group	[phone]
Simon Maine

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 2013.

 

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