Marshalls looks to future after summer downpours hit trading
PAVING and landscaping specialist Marshalls today said its revenue for last year was down by 7% because of the wet summer but the outlook for the year ahead is looking brighter.
The Huddersfield-based group said that its turnover for the 12 months to December 31 was £309m compared to £334m in 2011, hit by the heavy rain over its traditionally busy summer months.
However Marshalls said that current trading is in line with expectations while it continues to grow its business in both public sector and commercial markets including street furniture, water management and indoor stone flooring.
International business has grown to almost 5% of group sales.
It said its restructuring programme, announced last July, was completed ahead of schedule to cut costs, reduce inventories and conserve cash to mitigate the impact of the reduced sales.
The restructuring, which cost £7m, will give annual cash savings of at least £4m and has see a reduction in year end net debt to £64m compared to £77m last year, which is on track to meet its target net debt to EBITDA ratio of two times cover by the end of 2013.
As a result of the change in future Corporation Tax rates on deferred tax and recently completed property transactions Marshalls expects a tax credit of approximately 10% on underlying earnings in 2012.
The group will announce its full year results on Friday March 8.
