Strong growth sees profits soar at landscaping specialist
PRE-TAX profits have increased by 75% at landscaping business Marshalls.
In its interim results for the half year to the end of June, the firm saw pre-tax profit of £14m, up from £8m in the same period last year. However, revenue dropped to £180m, a 15% decrease from this time last year when revenue stood at £156.5m. Operating profit from continuing operations came in at £15.6m, up from £9.8m and EBITDA from continuing operations was £22.2m, up from £17m this time last year.
Martyn Coffey, chief executive, said: “Marshalls has experienced strong growth in the first half of the year and forward indicators continue to be positive in all major end markets. Our volume growth has outperformed the market, we are delivering benefits from operational gearing and our operating margins have improved strongly.
“Marshalls remains focused on product innovation and service delivery initiatives to deliver continued sales growth and further improve trading margins. The medium term objective is for the group to return to the much higher revenue and profit levels that were achieved by Marshalls before the recession.”
The Elland-headquartered group said trading conditions continue to be positive and the group has been experiencing strong order intake and sales growth 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 that the full year revenue and profit before taxation will be above original expectations, the group said.
Sales to the public sector and commercial end market, which represent approximately 62% of Marshalls’ sales, were up 19% on a continuing basis. Sales to the domestic end market, which represent approximately 32% of group sales, were up 4% compared with the prior year period. Sales in the international business have increased by 42% in the six months ended 30 June 2014 and are now 6% of group sales.
Marshalls has increased its interim dividend by 14% to 2p per share.
