Marshalls’ revenues are paved with glory
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.”