Marshalls raises £34m through rights

13th May 2009 08:26

Paving slab and tile maker Marshalls is to raise £34m though a rights issue after sales tumbled 19% in the first four months of 2009.Revenue for the four months to April dropped to £103m, from £135m. Underlying daily sales revenue on a like for like basis was down 19% though Marshalls says there was a strong comparative period in 2008.Going forward, the Public Sector and Commercial market, 59% of revenue in 2008, is more subdued following a period of robust activity and set to decline in the first half of 2009 before levelling out during the second half of the year. The domestic market has recently performed more strongly than expectations with encouraging trading during the important Easter period,Marshalls said. Terms of the rights issue are 2 for 5 at 65p. The fundraising will reduce the group's financial indebtedness and provide a more conservative capital structure for the current environment.