Demand grows for paving that eases flooding

The Huddersfield-based firm’s new paving slabs can hold a metre of flood water and can prevent millions of pounds worth of damage caused by flooding every year.

Marshalls’ new chief executive Martyn Coffey said: “We’re talking to a number of local authorities about permeable paving. Flooding is becoming more commonplace and it makes complete sense for councils to make this investment.

“When rivers break their banks the tarmac rises, which has been the case in many town centres. Without doubt permeable paving can reduce the flooding.”

He added that there isn’t much difference between the cost of permeable paving and tarmac and said that councils will save money in the long run by cutting down the cost of flood damages.

Permeable paving looks just like normal paving and works by allowing rainfall to percolate through the paving surface.

The water ﬂows into a specially prepared sub-base, where the spaces between the stones which make up the structure act as a temporary reservoir.

During a rainstorm, the water is collected in the sub-base before being slowly released into the ground beneath the pavement or into the main sewer.

Marshalls reported a 40 per cent jump in annual pre-tax profits to £13m yesterday and said revenue rose two per cent to £307.4m in the year to December 31.

The group outlined plans to return to the revenue and profit levels achieved before the recession. Before 2008 the group was reporting revenue of £400m and profits of between £30m and £40m.

“It has to be the objective to get Marshalls back there,” said Mr Coffey.

Asked when this will happen, he said: “It will be beyond 2015. It won’t be in three years, but it might be in five years. Yes it’s a few years away, but the journey is now upwards.”

During the height of the recession Marshalls cut its cost base, closed plants and announced hundreds of job losses.

Yesterday Mr Coffey said this process is being reversed and this year it will recruit another 160 people, with around a third in the Yorkshire area.

The recruitment drive will take the total workforce up to 2,200 people.

Marshalls said the first half was quite difficult, but sales rose nine per cent in the second half as better weather and an improvement in the economy both boosted sales.

“We’ve seen a recovery in both the commercial and the domestic business,” said Mr Coffey.

“New housebuilding is a real pick up – that accounts for eight per cent of sales.

“What tends to happen when house prices go up is people are more inclined to invest in their house. They say you do the driveway before you sell and the patio after you’ve bought.”

While the houses themselves tend to feature little paving, Marshalls is seeing a boost from the development around new homes.

Another big area of growth is rail as Network Rail revamps its station network.

International sales rose by 23 per cent as demand grows in countries like Belgium, France, Holland and Germany.

Marshalls is now looking to export to North America and the Middle East.

“A lot of prestigious hotels want natural stone. York Stone is very well known,” said Mr Coffey.

Following the results analyst Gavin Jago at Shore capital said: “Following a difficult first half of 2013, total group sales in the second half were up by nine per cent and improvement was seen across the group’s main end markets.

“We expect Marshalls to benefit from continued improvement in the UK economy and the high level of operational gearing in its business model.”