Marshalls defies severe weather with stellar first half

Landscaping and construction supplier Marshalls has posted a 12% increase in revenue to £244.3m in its half year results despite the impact of severe weather conditions earlier in 2018.

The Elland-based business also saw a rise in pre-tax profit for the six months to the end of June, to £32.5m from £29.1m, while EBITDA came in at £41.6m, a 13% rise from 2017’s £36.7m figure.

Marshalls said that recent trading has been “very strong”, with both June and July revenues up 21%, while it said CPM Group, a pre-cast concrete manufacturer specialising in underground water management solutions which it acquired last October for £38m, had performed well.

The company said capital expenditure of £28m is planned for 2018 to support growth and deliver cost savings of £5m a year by 2019, while the business continues to target selective bolt-on acquisition opportunities.

Chief executive Martyn Coffey said: “The group continues to outperform the Construction Products Association’s growth figures, despite ongoing macroeconomic uncertainty.  The CPA’s recent Summer Forecast predicts a decrease in UK market volumes of 0.6% in 2018, followed by an increase of 2.3% in 2019, while the underlying indicators in the new build housing, road, rail and water management markets remains supportive.

“The self help programme to support organic growth is progressing well and the integration of CPM Group is on track with post acquisition trading continuing strongly. The board believes that Marshalls’ innovative product range and strong market positions mean the group is well placed to deliver continued future growth. The group’s focus remains the delivery of long-term sustainable growth, whilst maintaining a strong balance sheet and a flexible capital structure.

“The board remains confident of achieving its expectations for 2018.”

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