Revenues fall 25% at listed landscape products group
Elland-based manufacturer Marshalls has reported revenues for the six months ended 30 June 2020 of £210.5m (2019: £280.1m) a drop of 25% year on year.
In an update ahead of its half year results, the business says trading in June was better than expected with revenue 2% ahead of June 2019, with the benefit of two extra trading days.
On a like for like basis the firm’s June average daily revenue was down 7% compared to the prior year period.
But this still represents a significant improvement, as the severe impact of COVID-19 meant April was 66% down on a like for like basis.
Marshalls says its improved levels of trading have continued into the early part of July.
As at 30 June 2020, the Group had net debt of £53.9m, on a pre-IFRS 16 basis (2019: £55.6m). And the company notes it has not needed to access its additional bank facilities.
It said it had begun consultations with staff about its plans, which would affect 15% of its workforce. These proposals included site closures and changes in shift patterns.
In its latest update today, the company states: “The restructuring programme is now substantially complete. The flexibility and improved efficiency of our plants means that capacity has not been materially reduced.
“The cost of the restructuring programme will be booked in the accounts for the six months to 30 June 2020.
“Whilst business confidence and market demand remain uncertain, recent trading has been better than expected and continues to improve.
“The restructuring programme and the new bank facilities have served to further strengthen the Group and ensure it is well placed both to manage the ongoing impact of COVID-19 and future growth opportunities.
“Our aim is to protect the long term sustainability of the business and to ensure the Group remains focused on its strategic objectives.”