Marshalls sees better-than-expected annual profits

28th Aug 2014 11:03

Landscaping materials group Marshalls forecasted better-than-expected annual profits amid rising consumer confidence and more work on commercial projects such as London's Crossrail.Marshalls, which makes paving and stone products for patios and gardens as well as street furniture and paving, experienced strong growth in the first half and said forward indicators were positive in all its major end markets."If these positive market conditions continue through the second half, which will be measured against the stronger comparables in the second half of 2013, it is likely full-year revenue and pre-tax profit will be above our original expectations," the group said.Marshalls said domestic installers through whom it sells its products to the household market had record order books for the time of year as people did more home improvements.Commercial work from rail, water management and new house building continued to increase and the group was outperforming the market in those areas, it said.Marshalls' revenue from continuing operations in the six months to 30 June rose 15% to £180m from £156.5m a year ago.Sales to the public sector and commercial end market, which make up 62% of Marshalls' sales, rose 19% against a year ago. Domestic sales, which represent about 32% of group sales, lifted 4%. International sales increased 42% in the six months to 30 June and are now 6% of group sales. Operating profit from continuing operations was £15.6m against £9.8m last time. Underlying earnings from continuing operations were £22.2m against £17m beforehand.Chief executive Martyn Coffey said: "The medium term objective is for the group to return to the much higher revenue and profit levels we achieved before the recession."Shares in Marshalls rose 5.75p or 3.2% to 184.25p at 10:20 in London.PW