Marshalls looks to HS2 bonanza

The Huddersfield-based firm will bid for work on all the station upgrades, refurbishments and up to 30 new platforms.

Marshalls is in a good position to win contracts following its work on the award-winning upgrade of King’s Cross station. The firm won contracts to supply paving, natural stone, granite and street furniture at the London terminus.

Marshalls’ chief executive Martyn Coffey said: “HS2 will be a big opportunity. There will be 20 to 30 new platforms across the UK with brand new stations or refurbishments of existing stations.

“It’s a big project and we hope to secure as much as possible. From our point of view we’re talking tens of millions in contracts.”

Mr Coffey said he thought bidding would take place over the next 12 to 18 months.

Despite the political wrangles over HS2, Mr Coffey said stations such as Birmingham will need to be refurbished whatever the eventual outcome.

He was speaking as Marshalls reported strong trading in the first six months of 2014 thanks to a focus on fast-growing areas such as rail.

The firm said revenue from continuing operations rose 15 per cent to £180m in the six months to June 30.

Sales to the public sector and commercial market, which represent 62 per cent of’ sales, rose 19 per cent.

The group said it is targeting the faster growing parts of the market such as rail, home, landscape water management and internal natural stone flooring.

Home refers to the new housing estates that are springing up around the country as economic confidence returns.

Marshalls supplies flagstones and kerbs for pavements on the new estates.

Landscape water management refers to permeable paving which allows flood water to pass through paving and safely into the ground below rather than causing damage.

Internal natural stone flooring stems from the new trend for natural stone floors in buildings like shopping centres.

Successful new centres like Trinity Leeds have incorporated natural stone rather than carpet tiles to give a more modern, cleaner feel.

This trend is being echoed in homes where the popularity of underfloor heating in kitchens has made stone a viable alternative to carpeted, wooden and laminated flooring.

Homeowners will often choose to have the same stone floors in the kitchen as on the patio to give a seamless look.

Sales to the domestic market, which accounts for 32 per cent of sales, rose four per cent over the half year, reflecting stronger sales in the second quarter of 2013.

The survey of domestic installers at the end last month showed strong order books of 11.5 weeks, up from 10.2 weeks last year.

Marshalls said it is making good progress developing its international business, where revenue has increased by 44 per cent and now represents six per cent of group sales.

The Construction Products Association’s Spring forecast predicts growth of 4.5 per cent in 2014 and 4.8 per cent in 2015.

Marshalls said that based on the group’s forward indicators, the outlook remains positive in all major end markets.

The group reported strong order intake and sales growth in all its major markets and said it is increasing output to meet demand.