Marshalls says pension pots are paying out for home improvements

The Elland-based firm said pre-tax profits rose 57 per cent to £35.3m in 2015 and revenue rose eight per cent to £386.2m.

Chief executive Martyn Coffey said: “Money is being released from the pension pot and home improvement is the number one area for expenditure.

“This has been another good year for Marshalls with significant revenue and profit growth. This has been matched by a strong cash performance resulting in the increased dividend.”

The group will pay out a total dividend of 9.00p a share, which includes a supplementary dividend of 2.00p per share, up 50 per cent on the previous year.

“The dividend pay out reflects our optimism,” said Mr Coffey.

“We’ve got a five year development programme and we’re investing in and growing the business.”

He added that trading conditions remain positive and the group has seen positive order intake and sales growth across the business.

He said that whilst there remain political and economic uncertainties, the outlook remains good. The group is neutral on the European referendum, but Mr Coffey said: “We just want to get it over with. It’s the unknown that causes the disruption.”

Marshalls is 95 per cent UK orientated so the outcome would have little effect.

The group is eyeing up several bolt-on acquisitions in water management, street furniture and mineral products.

Analyst Clyde Lewis at Peel Hunt said: “Strong full year results, with pre-tax profit up 57 per cent, were accompanied with an extra 2p dividend payout, which partly reflects the strong performance in cash flow over the last 12 months.