Marshalls says trading meets expectations

The company also revealed that sales had maintained a positive trend, although the domestic market was more subdued.

Revenue from total operations for the six months ended June 30 2011 was £183m, compared with £170m in the same period last year.

Marshalls’ continuing revenue for the six months ended June 30 2011 increased by 9 per cent to £177m. Sales to the public sector and commercial end market, which represent approximately 60 per cent of Marshalls’ sales, were up 10 per cent and sales to the domestic end market, on a continuing basis, were up by 8 per cent compared to the prior year.

The company said that cash continues to be controlled tightly with continued focus on stock control and capital expenditure.

Net debt at June 30 2011 was £71m, with the higher level of sales increasing receivables through the working capital cycle.

The group’s site closure programme, which started in 2008, created a number of surplus sites, and one of these was sold in June 2011 for cash proceeds of £5m. Agreement has recently been reached to sell, separately, the Compton garage brand and the Alton and Robinsons greenhouse brands.

Commenting on market outlook, the company said: “The group’s marketing and sales initiatives continue to deliver positive results and, although market uncertainty remains, sales have maintained their positive trend. Based on our forward indicators, the outlook for the public sector and commercial end market remains mildly positive. The domestic end market is more subdued following the positive start to the year.

“The group continues to develop, innovate and improve its sourcing, manufacturing, distribution and sales capabilities, reducing costs wherever possible. Marshalls has strong operational and financial flexibility and, in order to identify new growth opportunities, is seeking to expand the geographical reach of existing value added products, to acquire new innovative products and to extend and expand its routes to market.”