Marshalls profits rise but domestic demand ‘softening’

The Huddersfield-based group, which supplies products ranging from natural stone paving to anti-terrorist bollards, said its strong figures in the first six months of the year compared with a year earlier when it was hit by poor weather.

Revenues from continuing operations increased nine per cent to £177.2m. Operating profits from continuing operations were up 26 per cent to £13.7m.

Domestic installer books - a key measure of demand from households - stood at seven weeks at the end of June. This was broadly level with April, but down on the 9.1 weeks seen in June 2010 as falling real incomes and rising prices take their toll on consumer confidence.

Chief executive Graham Holden said: “There is continuing strength in commercial to offset the anticipated weakness in public sector demand.

“The domestic outlook is softening although installer order books have remained consistent at around seven weeks. Overall, market volume is expected to be slightly lower in the second half of the year against strong comparatives.

“Despite the challenging macroeconomic background, the solid foundations of the business, the group’s strong market position, its sales and marketing initiatives and growing overseas sales mean that Marshalls is well positioned to deliver sales outperformance.”

Net debt increased from £66.7m a year earlier to £70.4m