Marshalls PLC Trading Update (3840R)

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RNS Number : 3840R

Marshalls PLC

09 December 2016

Trading Update: 9 December 2016

Trading Performance

Marshalls' revenue for the 11 months ended 30 November 2016 was up 3 per cent at GBP375 million (2015: GBP365 million).

UK revenue since the half year is up 4 per cent compared with the 2015 comparatives, and was particularly strong in the Domestic end market which, in the 5 months ended 30 November 2016, was up 15 per cent.

Sales to the Domestic end market for the 11 months ended 30 November 2016, which represent approximately 31 per cent of Group sales, were up 10 per cent compared with the prior year period. The survey of domestic installers at the end of October 2016 revealed order books of 11.0 weeks (October 2015: 11.2 weeks) and compared with 11.7 weeks at the end of June 2016.

Sales to the Public Sector and Commercial end market now represent approximately 64 per cent of Marshalls' sales. Commercial sales are broadly in line with the prior year. Based on public indicators we believe we continue to outperform our peers and gain market share.

Good progress has been made in the year to deliver the growth initiatives set out in the 2020 Strategy. The self-help programme to support organic growth is advanced and the drive for sustainable operational improvements is proving successful.

Dividend

The 2016 interim dividend of 2.90 pence per share, announced on 26 August 2016, was paid on 2 December 2016 to shareholders registered at the close of business on 20 October 2016.

We continue to be confident in our ability to meet our capital allocation objectives of investing in the core business, rewarding shareholders and maintaining financial prudence.

Outlook

The Board is confident of meeting its 2016 expectations. Alongside this, the underlying indicators have remained positive in Marshalls' main end markets while order intake and revenue growth remains robust and the positive cash generation reported at the Half Year has continued. Management continue to selectively identify and monitor bolt-on acquisitions in line with our 2020 Strategy. These will only be made if they meet our robust appraisal criteria.

Looking ahead into 2017, the Board notes the modest growth levels highlighted by the recent Construction Products Association autumn forecasts. The Board believes the Group's innovative product range, strong market positions and robust balance sheet mean it is well placed to deliver continued operational and profit improvements.

Enquiries:

 
                                                             +44(0)1422 
 Martyn Coffey    Chief Executive     Marshalls plc              314777 
 Jack Clarke      Finance Director 
                                                             +44(0)20 
 Andrew Jaques                         MHP Communications     3128 8540 
 James White 
 

Note to the Editor:

About Marshalls:

Established in the late 1880s, Marshalls is the UK's leading manufacturer of superior natural stone and innovative concrete hard landscaping products, supplying the construction, home improvement and landscape markets. Marshalls provides the product ranges, design services, technical expertise, innovative ideas and inspiration to transform gardens, drives and public and commercial landscapes.

Marshalls operates its own quarries and manufacturing sites throughout the UK, including a national network of manufacturing and distribution sites, and has operations in Belgium and sales representation in other international markets. As a major plc, Marshalls is committed to quality in everything it does, including the achievement of high environmental and ethical standards and continual improvement in health and safety performance.

Forward-Looking Statements:

Any statements in this release, to the extent that they are forward-looking, are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the markets in which Marshalls operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. More information about the factors that may affect Marshalls' performance is contained in the Annual Report to shareholders for the year ended 31 December 2015.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 09, 2016 02:00 ET (07:00 GMT)