Acquisitive building supplier Marshalls paves way for “bolt-on” buys

The board of Marshalls plc, the paving supplier, has said it was “increasingly encouraged” by the company’s performance, and had identified companies in high-growth markets to acquire in the coming period.

Group revenue for the four months ended 30 April 2017 was up 6% at £135m (2016: £127m).

Sales in the domestic market, which represented approximately 33% of group sales, were up 13% and Marshalls said it had seen its highest ever order books.

However sales in the public sector and commercial end market, which represented approximately 62% of Group sales, were up just 2 % compared with the prior year period.

It said it is targeting higher growth markets such as water management, rail and new-build housing.

It said that its acquisition focus remained centred on the minerals, protective street furniture and water management markets. The board said: “We are being selective but have identified good “bolt-on” acquisition opportunities in each area.”

Marshalls concluded: “The board believes that Marshalls’ innovative product range and strong market positions will continue to support the growth objectives of the 2020 Strategy and that the Group is well placed to drive through further sustainable improvements in operational efficiency.”