Marshalls PLC Trading Statement (4243N)

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RNS Number : 4243N

Marshalls PLC

09 May 2018

LEI: 213800S21IFC367J5V62

Trading Update: 9 May 2018

Board expectations for 2018 remain unchanged

Trading Performance

Group revenue for the four months ended 30 April 2018 was up 10 per cent at GBP149 million (2017: GBP135 million). In common with the rest of the industry, the severe weather conditions in this period have had a significant impact on sales with snow and ice making ground working difficult and our factories having to be closed for a number of days. It is estimated that the impact of the weather resulted in a reduction in sales of approximately GBP9 million. Sales in both the Domestic and Public Sector and Commercial end markets were strong in the weeks not impacted by the weather.

Sales in the Domestic end market, which represented approximately 29 per cent of Group sales, were significantly impacted by the severe weather and were down 2 per cent compared with the same period in the prior year. The survey of domestic installers at the end of April 2018 revealed order books of 10.9 weeks (2017: 12.7 weeks) which compared with 10.8 weeks at the end of February 2018.

Sales in the Public Sector and Commercial end market, which represented approximately 66 per cent of Group sales, were up 18 per cent compared with the same period in the prior year.

Good progress continues to be made in executing the 2020 Strategy and the self help programme to drive organic growth is progressing well. The Group continues to target those parts of the market where higher levels of growth are anticipated, including New Build Housing, Water Management and Rail. CPM Group Limited, which was acquired in October 2017, has continued to trade strongly and the integration is progressing in line with our expectations.

Outlook

The Construction Products Association ("CPA") has slightly reduced its 2018 forecast in the recent Spring Update, which reflects wider economic uncertainty.

The Board believes that Marshalls' innovative product range and strong market positions mean the Group is well placed to deliver continued future growth.

Notwithstanding the effects of the severe weather, the Board remains confident of delivering its 2018 expectations.

Enquiries:

 
                                     Marshalls             +44(0)1422 
 Martyn Coffey    Chief Executive     plc                   314777 
 Jack Clarke      Group Finance 
                   Director 
                                                           [phone] 
 Andrew Jaques                        MHP Communications    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 2017.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 09, 2018 02:01 ET (06:01 GMT)