Bullish Marshalls confident as profits rise 21%
BUILDING supplies giant Marshalls has had a half year of steady growth as it looks to continue on its growth strategy despite the Brexit bump.
Revenues were up 2% to £202.4m and the company reported pre-tax profits up 21% to £25.1m from £20.8m in the same period last year.
Marshalls has committed to its 2020 strategy, the first phase of which was to return to pre-recession profitability.
Plans include a £15m investment programme and sales growth of 10% per year in its smaller companies.
The firm has faced difficulties this year after its drivers announced a strike in June. However the outlook is rosy for the firm, who said it will be focusing on Crossrail opportunities, although the public sector market has plateaued for the business, domestic and commercial sector opportunities remain.
Martyn Coffey, chief executive, said: “Following a strong first half, the Group’s focus remains the delivery of the growth initiatives set out in the 2020 Strategy, whilst maintaining a strong balance sheet and flexible capital structure.
“The underlying medium to long-term market indicators remain supportive notwithstanding the heightened economic and political uncertainty since the EU referendum. This increased uncertainty has not impacted underlying trading to date although we continue to monitor closely the wider business environment. The Board is confident of achieving its expectations for 2016.
“The Group continues to invest in product innovation and service delivery initiatives and is driving through sustainable cost reductions and improvements in operational efficiency.
“This continues to improve the operational gearing across the Group which, alongside Marshalls’ growth strategy, will drive future shareholder return.”
