Marshalls outperforming the sector

Paving specialist Marshalls said it is outperforming the rest of the sector as revenues jumped 8 per cent to £430m in 2017.
By The Newsroom
Published 10th Jan 2018, 17:26 BST
Updated 10th Jan 2018, 17:30 BST
28th January 2011. Marshalls in Elland.28th January 2011. Marshalls in Elland.
28th January 2011. Marshalls in Elland.

The Elland-based firm said ​The Construction Products Association ​(CPA) has reduced its 2018 forecast and this reflects wider economic uncertainty. ​

However, Marshalls is outperforming the CPA growth figures​, boosted by a 12 per cent leap in sales at its homes division as more people upgrade their driveways. Many of Marshalls’ customers are retired​ with healthy pensions so they are not affected by falling consumer confidence.

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G​roup ​revenue include​d​ £9​m from CPM Group, which was acquired ​in October​. Marshalls said CPM has​ traded strongly since joining the ​g​roup. On a like for like basis, excluding the impact of CPM, ​g​roup revenue ​rose 6 per cent.

Sales in the ​d​omestic end market, which represent​s 32 per cent of ​g​roup sales, ​rose 12 per cent. The survey of domestic installers at the end of October 2017 revealed order books of 11.7 weeks, up from 11.0 weeks in 2016.

Excluding CPM, sales in the ​p​ublic ​s​ector and ​c​ommercial end market, which represent​s​ 61 per cent of ​g​roup sales, ​rose 2 per cent. ​Marshalls is target​ing​ ​areas where higher levels of growth are anticipated including ​n​ewbuild ​h​ousing, ​w​ater ​m​anagement and ​r​ail.

The ​group said it is confident of meeting its 2017 expectations​ and that ​​its innovative product range and strong market positions will support growth​.

Analyst Graeme Kyle​ ​​at Shore Capital said: ​“​We expect 2017 operating profits to be in-line/slightly better than analyst consensus.​“

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