Building products giant to pass on price rises through supply chain

Marshalls expects to be able to pass on price rises through the supply chain as it remains confident about its own prospects for the year ahead.

The FTSE 250 manufacturer supplies the construction and home improvement industries with natural stone and concrete hard landscaping products.

It has acknowledged there is “a more uncertain trading environment” ahead, which was reflected in the Construction Products Association’s recent Spring forecast that reduced its forecasts for market growth.

In a statement ahead of its AGM later today, Marshalls revealed revenues were up to £201m in the first four months of 2022. The 5% increase was despite being up against “a very strong period” in the previous year, which included record seasonal sales volumes in March and April 2021.

Its public sector and commercial markets, which account for two-thirds of the group’s sales, performed well, helped by a strong new build housing market. It expects this demand to continue, alongside higher levels of growth in road, rail and water management.

However its domestic end market suffered a reduction of 9%, which it blamed on a reduction in installer capacity in March and April, “largely due to more holidays being taken in 2022 compared to 2021 when the country was in lockdown”.

Elland-based Marshalls completed the £535m acquisition of Marley last month. It expects the pitched roof manufacturer will provide more exposure to the repair, maintenance, and improvement sector, and said “the integration process is now well underway”.

Panmure Gordon analyst Adrian Kearsey has reiterated the firm’s buy recommendation, with an 880p target price for Marshalls share price which closed last night at 578p.