City briefs: Marshalls; Clipper Logistics; and more
Elland-based manufacturer landscape products group, Marshalls, has forecast an improved outlook in its latest trading update today.
The business says trading since the half year has continued to improve and in the four months ended 31 October 2020, Group sales have returned to the same level as 2019 on a like for like basis.
Group sales in October 2020 were up 5% compared with the equivalent prior year period.
It says key drivers of this growth have been continued strong demand in the domestic end market, a return to more normal levels of trading in the public sector and commercial end market and continued strong growth in the international market.
Marshalls says it continues to target those parts of the market where higher levels of growth are anticipated including infrastructure projects in Road, Rail and Water Management.
Its update adds: “On 2 October the Group repaid the full amount of all furlough monies received, amounting to £9.4m.
“As at 31 October 2020, and following the repayment of furlough, the Group had net debt of £42.8m, on a pre-IFRS 16 basis (£53.9m, 30 June 2020). This is better than expected and reflects the recent trading performance. We continue to monitor cash flows closely.
“Marshalls liquidity remains strong and will support our investment priorities going forward.
“Trading continues to improve and order books are robust. Although market demand remains uncertain, we remain focused on developing future growth opportunities and delivering the strategic objectives in our five-year Strategy.”
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Leeds-based logistics firm, Clipper Logistics, says it is benefitting from the continued structural shift to e-commerce, which has accelerated during the ongoing Covid-19 pandemic.
In its trading update for the six months ended 31 October 2020, the Group says it expects to report revenue for the period of at least £300m, an increase of almost 20% against the prior year comparative period, including e-fulfilment logistics growth of over 30% and non-e-fulfilment logistics growth of approximately 10%.
The company’s update notes: “This continuing growth trajectory has been particularly driven by strong organic growth on the majority of e-fulfilment and returns management activities, as well as new contracts brought onstream in the period including Joules, N Brown, T M Lewin, Revolution Beauty and the NHS.
“Continued strong cash generation from operations has resulted in net debt of £27.9m at the period end, comfortably below 1x EBITDA (pre-IFRS 16), and compares to £64.4m at the same point last year and £45.1m at the end of the last financial year.
“This good momentum and the existing pipeline of new business opportunities is expected to give the Group continuing strong performance into the second half of the financial year.”
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Bingley-based Powerhouse Energy Group, which specialises in commercialising hydrogen production from waste plastic, has signed non-binding heads of terms with Hydrogen Utopia International Limited (HUI).
This is with a view to granting HUI an exclusive non-transferable licence for the application of Powerhouse Energy’s DMG® technology in Poland.
The use of this technology, which is designed to convert waste plastic into a syngas and/or hydrogen, will be subject to a formal agreement being reached between Powerhouse and HUI.
Tim Yeo, chairman of Powerhouse Energy, said: “We are delighted to have signed heads of terms with HUI.
“Powerhouse look forward to working with HUI on the potential use of our DMG technology being rolled out in Poland.”
Aleksandra Binkowska, founder of HUI, said: “It is a privilege and honour for HUI to enter into heads of terms in relation to rights to the technology of Powerhouse as the first company on the Continent.
“At HUI we believe that the DMG System is the one that will help save the world from unrecyclable plastic and we are thrilled that Poland will lead the way in creating low cost hydrogen and we hope that other countries will take our lead.
“On behalf of HUI I would like to thank the Board of Powerhouse for this opportunity and partnership.”
Following this signing, HUI paid Powerhouse a non-refundable deposit of €100,000. (£89,000)
