West Yorkshire’s Marshalls plc builds for growth as pre-tax profit rises by 21%

Marshalls plc, the Elland-based specialist Landscape Products Group, has reported a solid performance for in the half-yearly results for the period ending 30 June 2016.

During this period, Marshalls’ revenue grew by 2% to £202.4m, compared to £199.1m at the same time last year.

Operating profit increased to £26m (2015: £22m) and pre-tax profit also rose 21% to £25.1 million (2015: £20.8m).

Despite the uncertainty following the Brexit vote, Marshalls delivered a strong sales performance in May and June and the moving average monthly revenue trend shows that 2016 sales still exceed those of previous years for the same period.

Sales in the Public Sector and Commercial end market, which represent approximately 63% of Group sales, were broadly flat compared with the prior year period. Sales to the Domestic end market, which represent approximately 32% of Group sales, were up 7.1%.

Revenue in May and June was strong in the Domestic end market, where growth was 12% year on year.

Sales in the International business decreased by 10.8% in the 6 months ending 30 June 2016, and represent 5% of Marshalls’ sales.

However, despite the reduction in revenue, there has been a reduced loss within the International business. The new sales office in Dubai opened in January 2016 and this is having a positive impact on sales in the Middle East.

Martyn Coffey, Chief Executive, said: “Following a strong first half, the Group’s focus remains the delivery of the growth initiatives set out in the 2020 Strategy, whilst maintaining a strong balance sheet and flexible capital structure.

“The underlying medium to long-term market indicators remain supportive notwithstanding the heightened economic and political uncertainty since the EU referendum.

“This increased uncertainty has not impacted underlying trading to date although we continue to monitor closely the wider business environment. The Board is confident of achieving its expectations for 2016.

“The Group continues to invest in product innovation and service delivery initiatives and is driving through sustainable cost reductions and improvements in operational efficiency. This continues to improve the operational gearing across the Group which, alongside Marshalls’ growth strategy, will drive future shareholder return.”

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