Marshalls back to profit but warns markets ‘uncertain’
The Huddersfield-based group said sales in 2010 increased 3.7 per cent to £323.1m from 311.7m a year earlier despite heavy snowfall at the start and end of the year, which cost it around £11m. Marshalls returned to the black with pre-tax profits of £9.2m compared with £2.4m losses the prior year.
Sales to the public sector and commercial markets, which make up around 60 per cent of its revenues, were up six per cent. However, sales to the domestic market increased only one per cent as weak consumer sentiment continues.
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Hide AdChief executive Graham Holden said: “Sales have started to turn up following the difficult trading conditions of the previous two years although market uncertainty remains.
“On balance, the outlook for the public sector and commercial end market is mildly positive. The domestic end market showed modest growth in the second half of 2010 and installer order books at the end of February 2011 were an encouraging 7.2 weeks.”
Net debt was whittled down to £66.8m from £69.2m a year earlier. Marshalls proposed a 3.5p per share total dividend, level with a year ago.
Marshalls added the group now has the “lowest cost to market across the widest geographical range”, and is well placed to benefit when markets recover.