Marshalls confident despite revenue slip

BAD weather – including the coldest March since 1910 – has contributed to landscaping specialist Marshalls seeing revenues fall since the start of the year.

In an interim management statement covering the 19 week period to May 10, Huddersfield-based Marshalls saw revenues from continuing operations fall by £6m to £103m compared to the same period last year.

“Underlying activity was in line with expectations but the delay in the normal seasonal upturn due to adverse working conditions, including the coldest March since 1910, reduced revenue in the period,” the group said this morning.

“Order intake has recovered strongly since the middle of April to offset the shortfall and the programme of cost reduction and cash realisation measures, instigated in 2012, continues to deliver positive results.”

Its quarries and associated aggregate business, sold in April to Breedon, had flat revenues of £3m. The figure will be treated as a discontinued operation.
 
Marshalls said sales to the public sector and commercial market, which represent approximately 65% of its sales, were down 6% on a continuing basis.

It has recently won a contract to supply stone cladding to a “significant” project in the City of London that is expected to generate sales of more than £5m over the next two years.
 
Sales to the domestic market, which represent approximately 30% of group sales, were down 8%. 
 
Net debt is £28m lower than at the same stage in 2012.

The group added: “Marshalls has built increased financial and operational flexibility into its business model and remains focused on product innovation and a range of initiatives to deliver sales growth and improve trading margins. 

“There is no change in expectations for the current year and the group continues to be well placed to benefit as market conditions improve.”