Trading Update

RNS Number : 6971N

Marshalls PLC

20 May 2015

 



Trading Update: 20 May 2015

Trading Performance

Marshalls' revenue for the four months ended 30 April 2015 was up 12 per cent at £127 million (2013: £113 million). This increase is against strong comparatives for 2014. The Group continues to experience strong order intake and sales growth in all its end markets.  The revenue growth in the year to date is slightly ahead of our previous expectations with a consequent improvement in profitability.

Sales in the Public Sector and Commercial end market, which now represent approximately 64 per cent of Marshalls' total sales, were up 17 per cent compared with the prior year period. The Group continues to target those parts of the market where higher levels of growth are anticipated, such as Rail, Newbuild Housing, Water Management and Street Furniture.

Sales in the Domestic end market, which represent approximately 30 per cent of Marshalls' sales, were up 6 per cent compared with the prior year period. The survey of domestic installers at the end of April 2015 revealed order books of 10.6 weeks (2014: 11.5 weeks) and compared with 9.0 weeks at the end of February 2015.

International revenue has grown by 2 per cent compared with the prior year period and represents 6 per cent of Marshalls' sales. Continued progress has been made in developing the International business and its operations are now better aligned with market opportunities. The restructuring of the Belgium business, implemented and accounted for in the second half of 2014, has now been completed on budget.

Outlook

The Construction Products Association's Spring Forecast predicts growth in UK market volumes of 5.5 per cent in 2015, an improvement on their Winter Forecast, and growth of 4.0 per cent in 2016.  The Group continues to increase output to meet growing demand and so deliver benefits from its operational gearing.

Continued emphasis is being placed on the further development of the Marshalls' brand across all of the Group's businesses.  The Group is investing in product innovation and service delivery initiatives to deliver ongoing sales growth, improved trading margins and increased return on capital employed.

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 2014.

 

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