Marshalls set to cash in on improving markets

26th Mar 2014 08:39

Paving and landscape products group Marshalls posted higher profits and said it was poised to benefit from a recovery in the UK housing and building markets.Marshalls said sales price rises and a 23% increase in international revenue helped it to boost pre-tax profit in the year to December 31st by 40% to £13m, on a 2% rise in revenue to £307.4m.The group, which supplies concrete street furniture and other building products to local councils and commercial customers, said its public sector and commercial sales rose 1%. Sales of stone products for patios and other domestic uses increased 2%.It said demand in both sectors had improved in the six months to December 31st, with revenue rising 9% compared to the second half of 2012.Marshalls responded to the economic downturn in the last six years by closing plants and cutting jobs, but said it now had a chance to benefit from growth in areas such as landscape water management and internal natural stone flooring, home, rail and retail.It won its largest ever natural stone paving order in Manchester and two significant export orders for street furniture in Saudi Arabia and Qatar. The group is also supplying stone cladding for a new office building in the City of London.Commercial work from rail and new house building is also increasing from historically low levels.The group kept its final dividend at 3.5p. It said sales in January and February 2014 were up 18% against a weak weather-affected performance last year. Chief Executive Martyn Coffey said: "The business is well positioned to take full advantage of the improving market conditions. In addition, there are further opportunities to refocus the business, establish rigorous targets and set a clear growth objective for the years ahead."Shares in Marshalls rose 2p or 1.1% to 181.5p at 09:17 in London.PW