Profits surge at paving specialist Marshalls

The paving specialist recorded revenue growth of 17 per cent to £358.5m, driven by volume growth of 13 per cent.

Sales to the public sector and commercial end market, which represent approximately 64 per cent of group sales, rose 20 per cent last year, while sales to the UK domestic market, which equal around 30 per cent of sales, were up nine per cent. The business also saw 27 per cent growth in its international revenue, bringing it to almost six per cent of sales.

Earnings per share from continuing operations jumped 46 per cent to 10.13p.

Marshalls chief executive Martyn Coffey said the business’ operating flexibility has allowed it to increased output without dramatically adding to its cost base, bringing benefits through operational gearing.

He said: “2014 has been a strong year for Marshalls with significant revenue and profit growth. Trading conditions remain positive and the group continues to experience strong order intake and sales growth in all its end markets.

“The market outlook remains strong with the CPA’s current forecast for construction output standing at 5.3 per cent growth in 2015 and growth of 4.2 per cent, 3.4 per cent and 3.9 per cent in the following 3 years.”

In 2015, sales in January and February were up 13 per cent year-on-year. “We are planning for further progress in 2015 against a background of continuing favourable market conditions,” he added.