Severe weather hits Marshalls’ sales by £9m

Landscaping and construction supplier Marshalls said the impact of severe weather has resulted in a reduction in sales by an estimated £9m.

The Elland-based business reported group revenue for the four months to the end of April up 10% at £149m (2017: £135m).

But the company said that, in common with the rest of the industry, the severe weather conditions in the period have had a “significant impact” on sales with snow and ice making ground working difficult and factories having to be closed for a number of days.

As a result, Marshalls said it expects a reduction in sales of approximately £9m.

Sales in both the domestic and public sector and commercial end markets were strong in the weeks not impacted by the weather, it added.

“Sales in the domestic end market, which represented approximately 29% of group sales, were significantly impacted by the severe weather and were down 2% compared with the same period in the prior year. The survey of domestic installers at the end of April 2018 revealed order books of 10.9 weeks (2017: 12.7 weeks) which compared with 10.8 weeks at the end of February 2018,” Marshalls said.

It added that sales in the public sector and commercial end market, which represented approximately 66% of group sales, were up 18% compared with the same period in the prior year.
The company said: “The board believes that Marshalls’ innovative product range and strong market positions mean the group is well placed to deliver continued future growth.

“Notwithstanding the effects of the severe weather, the board remains confident of delivering its 2018 expectations.”