Results show improved profitability at Marshalls

Landscape products supplier Marshalls is back at pre-recession levels of profitability, with revenue from landscape products now at £300m - up by £19m since 2014.

Marshalls: revenue from landscape products grew by 14 per cent last year and further releases planned this year - image: Marshalls
Marshalls: revenue from landscape products grew by 14 per cent last year and further releases planned this year - image: Marshalls

Around two-thirds of its sales are to the public and commercial sectors and a third to the domestic sector.

The company reported its preliminary results for the year ending December 2015 were at £386.2m compared to £358.5m in 2014, while pre-tax profit was up 57 per cent to £35.3m.

Its revenue is up eight per cent year on year and it has a 9.7 per cent operating margin. The smaller UK businesses, which include street furniture, mineral products and stone cladding, have also delivered £8.7m of revenue growth in 2015 and are all now profitable.

Commercial demand is increasing in areas including water management and sustainable urban drainage systems products, street furniture and new-build housing. A new range of paving products is among product releases planned for this year, after revenue from new landscape products grew by 14 per cent last year.

The company is also continuing to drive sales through its approved domestic installers, which grew by five per cent last year. Its annual survey of domestic installers at the end of February revealed order books of 10.5 weeks compared to nine weeks in February 2015.

Chief executive Martyn Coffey said: "This has been another good year for Marshalls with significant revenue and profit growth delivered in 2015. This has been matched by a strong cash performance resulting in the increased dividend for this year. Trading conditions remain positive and the group continues to experience positive order intake and sales growth across the business.

"While there remain political and economic uncertainties, the outlook remains good with the (Construction Products Association's) current forecast for construction output standing at 3.6 per cent growth in 2016 and growth of 4.1 per cent, 4.2 per cent and 4.0 per cent respectively in the following three years."

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