Marshalls confident it can drive growth
LANDSCAPING specialist Marshalls has today said it is well placed to improve trading margins and deliver growth as market conditions improve.
The Huddersfield-based group announced in an interim management statement for the six months ended June 30, that working conditions in the first quarter, which included the coldest March since 1910, were difficult but it has seen an improvement in Q2 with a positive change in customer sentiment and order intake increasing during May and June. It said its programme of cost reduction and cash realisation measures, instigated in 2012, continues to deliver positive results.
Sales in Marshall’s international business have increased by 12% in the six months ended 30 June 2013 and are now 5% of group sales.
The group said: “Continued progress is being made in developing the international business and activity levels are encouraging.”
Revenue from continuing operations for the six months ended 30 June 2013 was £157m (2012: £163m), a decrease of 4%.
Sales to the public sector and commercial end market, which represent approximately 63% of Marshalls’ sales, were down 6%, on a continuing basis. Sales to the domestic end market, which represent approximately 32% of group sales, were down 3% compared with the prior year period. The survey of domestic installers at the end of June 2013 revealed order books at 10.2 weeks (2012: 9 weeks) and compares with 8.5 weeks at the end of April 2013 (2012: 7.5 weeks).
The sale of quarries and associated aggregate businesses to Breedon Aggregates England completed on April 30 and Marshall’s said for the year ended December 31 2012, the operating profit generated from the operations at these quarries was £1.1m, based on annual turnover of £10m, of which £8.8m came from sales outside the group.
The business said: “Marshalls has increased its financial and operational flexibility and continues to focus on product innovation and service delivery initiatives to drive sales growth in all its markets. There is no change in expectations for the current year and the group is increasingly well placed to improve trading margins and deliver growth as market conditions improve.”
