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Marshalls PLC  -  MSLH   

Trading Update

Released 07:00 04-Jan-2013

RNS Number : 8054U
Marshalls PLC
04 January 2013
 



Trading Update: 4 January 2013

 

Trading Performance

 

Marshalls' revenue for the year ended 31 December 2012 was £309 million (2011: £334 million; 2010:  £309 million) a decrease of 7 per cent including the impact of prolonged periods of heavy rainfall during the normally busy summer months.  The Group's International business continues to make steady progress and has grown to approaching 5 per cent of Group sales.  Current Group trading continues to be in line with expectations.

 

Sales to the Public Sector and Commercial end market, which represent approximately 63 per cent of Marshalls' sales, were down 6 per cent and sales to the Domestic end market, which represent approximately 32 per cent of Group sales, were down 12 per cent compared with the prior year period.

 

The reorganisation announced in July 2012, and detailed in the Half Year statement in August 2012, was completed ahead of schedule and the cost reduction benefits are being delivered as expected. The decisive and proactive actions taken by Marshalls in 2012 in response to continuing uncertainty about the market environment have reduced both fixed costs and net debt. Cash realisation from surplus property sales, accelerated inventory reduction and reduced capital expenditure is ahead of plan.  This has resulted in a reduction in year end net debt to £64 million (2011:  £77 million) which is on track to meet our target net debt to EBITDA ratio of two times cover by the end of 2013.

 

As a result of the change in future Corporation Tax rates on deferred tax and recently completed property transactions we expect a tax credit of approximately 10 per cent on underlying earnings in 2012.

 

Outlook

 

Despite the challenging economic background, Marshalls continues to target growth markets within the Public Sector and Commercial end market. Street furniture, water management and internal natural stone flooring are seen as particular growth areas, in addition to the continuing commitment to home, rail and retail. The Group continues to focus on product innovation and delivering industry leading customer service. 

 

In the Domestic end market consumer confidence remains reasonably stable, albeit at a low level, and the continued development of the Marshalls Register is an area of focus. The survey of domestic installers at the end of October 2012 revealed order books of 8.7 weeks (October 2011: 7.8 weeks).

 

Marshalls has strong operational and financial flexibility.  Capacity and the cost base are at a sustainable level for current market volumes.  The Group is well placed to take advantage of any improvement in market conditions.

 

The next update will be the Preliminary Results Announcement on Friday 8 March 2013.

 

Enquiries:

 

Graham Holden

Chief Executive

Marshalls plc

01484 438900

Ian Burrell

Finance Director

 

Marshalls plc

01484 438900

Jon Coles

 

Brunswick Group

0207 404 5959

Charlotte Winsley

 

Brunswick Group

0207 404 5959

 

 

4 January 2013

 

Note to the Editor:

 

About Marshalls:

 

Established in the late 1880s, Marshalls is the UK's leading manufacturer of superior natural stone and innovative concrete hard landscaping products, supplying the construction, home improvement and landscape markets.  Marshalls provides the product ranges, design services, technical expertise, innovative ideas and inspiration to transform gardens, drives and public and commercial landscapes.

 

Marshalls operates its own quarries and manufacturing sites throughout the UK, including a national network of manufacturing and distribution sites.  As a major plc, Marshalls is committed to quality in everything it does, including the achievement of high environmental and ethical standards and continual improvement in health and safety performance.

 

Forward-Looking Statements:

 

Any statements in this release, to the extent that they are forward-looking, are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the markets in which Marshalls operates.  It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated.  More information about the factors that may affect Marshalls' performance is contained in the Annual Report to shareholders for the year ended 31 December 2011.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Trading Update - RNS