PAVING company Marshalls reported slower growth in the first four months of 2008 as a result of a deterioration in the domestic market as customers postpone home improvements in the current tough climate.
The Huddersfield-based company said revenues in the four months to April 30 rose three per cent to £135m while like-for-like revenues increased just one per cent. This compares to a 6.6 per cent increase in revenues to £402.9m last year.
The Const
ruction Products Association is forecasting flat growth in the domestic market this year and a three per cent decline in 2009.
In contrast the public and commercial sector should show growth of 4.6 per cent this year and a further 4.2 per cent increase in 2009.
Marshalls said the public and commercial sector, which accounts for 55 per cent of its revenues, remains robust and indications are positive for 2008.
In the domestic market, installer order books at the end of April were down to 8.2 weeks compared with 8.4 weeks. Order books have been above nine weeks during March and April for the past two years.
The group's shares closed the day down 2.6 per cent, a fall of 6p to 225p.
Marshalls is less exposed to the economic downturn than other home improvement companies as its customers tend to be more affluent and mature than the typical DIY customer. But the tough economic climate means that it is also feeling the pinch.
Marshalls will be sponsoring the Chelsea Flower Show for the second time later this month.
The group will be exhibiting a garden that has been designed by schoolchildren as "the garden that kids really want" featuring a tree house and play areas. The idea is to engage younger people in garden design from a young age and is part of its long-term brand awareness strategy.
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