Marshalls' role in preventing terror attacks

Marshalls has reported record profits after seeing strong demand for sturdy street furniture that can help prevent the terrorist atrocities that hit Nice and Berlin last year.
Martyn Coffey, CEO of MarshallsMartyn Coffey, CEO of Marshalls
Martyn Coffey, CEO of Marshalls

In both cities, truck drivers were able to mow down tourists in highly populated areas as they crashed through flimsy street furniture such as planters.

Elland-based Marshalls reported strong interest in removable and retractable bollards and other street furniture that can prevent further atrocities.

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The group's chief executive Martyn Coffey said: "It's an area of growth in both the Middle East and Britain. This street furniture can prevent vehicle access. It can stop the driver of a seven ton truck.

"Look at the attacks in Nice and Berlin. They were areas where there were a lot of people."

He said the group has seen interest from a number of different areas such as stadiums and areas where there are celebrations, marches or demonstrations.

"Some products are removable or retractable," said Mr Coffey.

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"In Nice they had planters, but the truck went through them. They were using surface mounted furniture whereas ours have foundations."

He was speaking as the group announced record results for 2016 and said it is well placed to deliver further growth. The firm said sales and order intake have been strong in the first couple of months of 2017.

The group's shares rose nearly 10 per cent to 347p after it announced record pre-tax profits growth of 31 per cent to £46m in the year to December 31. Revenue rose 3 per cent to £396.9m.

Mr Coffey said the ​second half of the year was stronger than the first.

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"Profit was up over 30 per cent. We think this is our new product development coming through. Also there was cost improvement and that has allowed us to put the dividends up," said Mr Coffey.

"Our stand out number is the domestic performance. Consumer confidence has stayed high. There was a lot of concern over Brexit, but we haven't seen that."

He said the group is not complacent about how things will turn out once Article 50 is triggered, kicking off the two year process to leave the EU.

"We are going into a new era, but we haven't seen any effect. Two thirds of people who own houses in Britain are over 55," he said.

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"A lot of them were supporters of Brexit. We haven't seen a cancelled order since the referendum."

Analyst Adrian Kearsey ​at Panmure Gordon said: "2016 provides a fantastic reminder why Marshalls is one of our top picks within the construction materials space.

​"​Yet again it is delivering: market share gains, margin expansion, consistent cash generation and rewarding shareholders with ordinary and supplementary dividends (total dividends 11.7p v​ersu​s 9.0p, including supplementary 3.0p v​ersu​s 2.0p).

​"​Meanwhile the business continues to invest in future growth (product development, capex programme that is helping drive margins). ​We are raising our ​20​17 PBT estimates from £48m to £49m​."​

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Analyst Graeme Kyle at Shore Capital added: "The positive outlook statement provided by ​Marshalls' ​management contrasts with the more cautious outlook statements​ ​from Travis Perkins and Grafton.

​"​Management explained that there​ ​is now significant pent-up demand for domestic household driveway and landscaping products following a​ ​demand collapse in 2008-10 when equity release facilities dried up.​"​