Mar­shalls’ rev­enues are paved with glory

Yorkshire Post - Business - - FRONT PAGE -

PAVING SPE­CIAL­IST Mar­shalls said it is out­per­form­ing the rest of the sec­tor as rev­enues jumped 8 per cent to £430m in 2017.

The El­land-based firm said The Con­struc­tion Prod­ucts As­so­ci­a­tion (CPA) has re­duced its 2018 fore­cast and this re­flects wider eco­nomic un­cer­tainty.

How­ever, Mar­shalls is out­per­form­ing the CPA growth fig­ures, boosted by a 12 per cent leap in sales at its homes divi­sion as more peo­ple up­grade their drive­ways. Many of Mar­shalls’ cus­tomers are re­tired with healthy pen­sions so they are not af­fected by fall­ing con­sumer con­fi­dence.

Group rev­enue in­cluded £9m from CPM Group, which was ac­quired in Oc­to­ber. Mar­shalls said CPM has traded strongly since join­ing the group. On a like for like ba­sis, ex­clud­ing the im­pact of CPM, group rev­enue rose 6 per cent.

Sales in the do­mes­tic end mar­ket, which rep­re­sents 32 per cent of group sales, rose 12 per cent. The sur­vey of do­mes­tic in­stall­ers at the end of Oc­to­ber 2017 re­vealed or­der books of 11.7 weeks, up from 11.0 weeks in 2016.

Ex­clud­ing CPM, sales in the pub­lic sec­tor and com­mer­cial end mar­ket, which rep­re­sents 61 per cent of group sales, rose 2 per cent. Mar­shalls is tar­get­ing ar­eas where higher lev­els of growth are an­tic­i­pated in­clud­ing new­build hous­ing, wa­ter man­age­ment and rail.

The group said it is con­fi­dent of meet­ing its 2017 ex­pec­ta­tions and that its in­no­va­tive prod­uct range and strong mar­ket po­si­tions will sup­port growth.

An­a­lyst Graeme Kyle at Shore Cap­i­tal said: “We ex­pect 2017 op­er­at­ing prof­its to be in-line/ slightly bet­ter than an­a­lyst con­sen­sus.”

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