Marshalls PLC Trading Update (6584E)
May 10 2017 - 2:00AM
UK Regulatory
TIDMMSLH
RNS Number : 6584E
Marshalls PLC
10 May 2017
Trading Update: 10 May 2017
Trading Performance
Group revenue for the four months ended 30 April 2017 was up 6
per cent at GBP135 million (2016: GBP127 million) with the
underlying indicators remaining strong in Marshalls' end markets.
The Group's positive cash generation has continued.
Sales in the Domestic end market, which represented
approximately 33 per cent of Group sales, were up 13 per cent
compared with the prior year period. The survey of domestic
installers at the end of April 2017 revealed our highest ever order
books of 12.7 weeks (2016: 12.4 weeks) and which compared with 10.9
weeks at the end of February 2017.
Sales in the Public Sector and Commercial end market, which
represented approximately 62 per cent of Group sales, were up 2 per
cent compared with the prior year period. The Group continues to
target those parts of the market where higher levels of growth are
anticipated, and Water Management, Rail and Newbuild Housing
continue to show strong order intake.
The Group continues to deliver strong operational cash flows
through the continuation of the tight control of inventory and
effective management of working capital. Net debt at 30 April 2017
was GBP19.1 million (2016: GBP33.5 million).
2020 Strategy
Good progress continues to be made delivering the growth
initiatives set out in the 2020 Strategy and the Group is
continuing to prioritise organic capital expenditure projects. Our
significantly increased capital expenditure programme is making
good progress. We have increased research and development and new
product development resulting in an encouraging pipeline of new
products. Our strategy is to maintain a strong balance sheet,
flexible capital structure and a clear capital allocation policy
that drives growth and rewards shareholders. Our acquisition focus
remains centred on the Minerals, protective Street Furniture and
Water Management markets. We are being selective but have
identified good "bolt-on" acquisition opportunities in each
area.
Outlook
The Construction Products Association's ("CPA") recent Spring
Forecast predicts growth in UK market volumes of 1.3 per cent in
2017, which represents a slight improvement on their Winter
Forecast. Group sales and order intake have continued to be strong
in the first 4 months of 2017 such that the Board is now
increasingly encouraged regarding the Group's performance for the
current year overall.
The Board believes that Marshalls' innovative product range and
strong market positions will continue to support the growth
objectives of the 2020 Strategy and that the Group is well placed
to drive through further sustainable improvements in operational
efficiency.
Enquiries:
Martyn Coffey Chief Executive Marshalls plc +44(0)1422 314777
Jack Clarke Group Finance
Director
+44(0)20 3128
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
2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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