Marshalls counts the cost of April’s deluge

In a trading statement, Huddersfield-based Marshalls’ reported that its revenue for the four months ended April 30 2012 of £106m was three per cent lower than last year.

The trading statement added: “After a satisfactory first quarter, sales did not show their usual post Easter uplift. Working conditions in April were disappointing, hampering sales and obscuring underlying market trends. The rainfall in April of 138 mm has been an important factor in the reduction in sales of £5m (equivalent to three days’ installations) in the month compared with last year.

“Sales to the public sector and commercial end market, which represent approximately 64 per cent of Marshalls’ revenue, were flat. Sales to the domestic end market were particularly hit by the bad weather and were lower by eight per cent compared with the prior year.”

The company reported that consumer confidence at the end of April 2012 was consistent with April 2011. The group’s international growth strategy is progressing well and to plan, the statement added.

The statement continued: “The Construction Products Association continues to forecast a small reduction in UK market volumes in 2012 and against this backdrop the group remains cautious about the short term outlook. Marshalls has built increased financial and operational flexibility into its business in recent years and remains encouraged by the continuing strength of the private commercial end market, which has offset weakness in public sector, and the resilience of the installer order book.

“The positive impact of targeted growth initiatives should continue to mean that Marshalls is well placed to outperform the market.”