Virus crisis spells jobs blow for firm

PAVING SPECIALIST Marshalls could axe up to 400 jobs following the decision to permanently close some of its operating sites amid a sharp drop in demand caused by the Covid-19 crisis.

The Elland-based firm is in consultation with employees to reduce staff numbers by up to 15 per cent after a 27 per cent fall in sales in the first four months of 2020.

The firm said it is re-opening plants as demand returns. It said its facilities have low re-start time and cost requirements.

“This flexibility and our improved efficiency means that capacity will not be materially reduced by the proposed changes and we will continue to satisfy our customers’ requirements,” the firm told shareholders at its AGM.

As part of these actions, the board and executive management have agreed to a 20 per cent reduction in remuneration. Senior managers in the business have now also agreed a 15 per cent reduction in their remuneration.

Additionally, Marshalls is using the Government’s scheme which allows the deferral of tax payments that would normally have been payable in the period to June 30. It also continues to use the furlough arrangements that are in place.

As a result of the impact of the Covid-19 crisis, Marshalls’ sales in the first four months to April 30 fell from £180m to £131m. Sales activity steeply fell in the last week of March and throughout April.

However, the firm said that in the early part of May it has seen daily levels of activity improve and it is currently at 50 per cent of its daily revenues compared with the same period in 2019.

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