Double digit pre-tax growth for “confident” Marshalls

Marshalls has reported a 16% increase in pre-tax profits for its half year, and remains “confident” in a strong year, the group said in an update this morning.

For the six months to June 2017, the landscaping and construction supplier saw £219.1m in revenues, up from £202m in the same period last year.

Pre-tax profits jumped 16% to £29.1m for the Elland-based group.

The Board has declared an interim dividend of 3.40p per share, up from 2.9p for the period to June last year, an increase of 17%, which the group says reflects its strong cash generation. This dividend will be paid on 6 December 2017 to shareholders.

Martyn Coffey, chief executive, said: “The Construction Products Association’s (“CPA”) recent Summer Forecast predicts growth in UK market volumes of 1.9% in 2017, which represents a slight improvement on their Spring Forecast.

“The Group continues to outperform the CPA growth figures and the underlying short to medium term market indicators remain supportive. The CPA’s 2018 forecast has recently been reduced, which reflects the continuing wider economic uncertainty.

“The Group continues to invest in product innovation and service delivery initiatives and is well placed to drive through further sustainable improvements in operational efficiency gains.

“The Board believes that Marshalls’ innovative product range and strong market positions will continue to support growth and operational profit improvements during the delivery of the 2020 Strategy and will drive future shareholder returns.

“The Group’s focus remains the delivery of the growth initiatives set out in the 2020 Strategy, whilst maintaining a strong balance sheet and a flexible capital structure.

“The Board remains confident of achieving its expectations for 2017.”

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