Manufacturer confident of emerging stronger and more competitive from Covid-19 crisis
Elland-based manufacturer Marshalls believes it can “emerge from current market difficulties in a stronger competitive position”, having completed a restructuring programme.
In it’s half year results which recorded a drop in revenues of 25% to £210.5m, the business stated that the restructuring programme originally announced in May has been completed and impacted approximately 15 per cent of the firm’s total workforce. The restructuring has seen the business close three of its manufacturing facilities at Falkirk, Lean and Livingston as well as the closure of a number of its Premier Mortars sites.
The restructuring is expected to reduce fixed costs by c. £12m in a full year and improve the firm’s operation efficiency moving forward.
The cost saving drive comes as the Group said that its net debt at the end of June 2020 of £53.9m was “remained ahead of management expectations at £60.8 million”, but that it remained focus on cost reduction measures.
Despite the challenges posed by Covid-19 the business has seen international sales increase by 15 per cent when compared with the previous half-year period and as a result the group is continuing to develop its global supply chains and infrastructure to meet the demand.Commenting on these results, Martyn Coffey, chief executive, said: “Although business confidence and market demand remain uncertain, recent trading has been better than expected and continues to improve.
“Our restructuring programme is now complete and the new bank facilities have further strengthened the Group. The decisive actions that have been taken have improved the efficiency and flexibility of our plants and will help Marshalls to emerge from the current market difficulties in a stronger competitive position.
“Marshalls holds a leading position and enjoys a strong brand in its core markets. We will continue to protect the long term sustainability of the business and will remain focused on developing future growth opportunities and delivering the strategic objectives set out in our 5 year Strategy.”