TIDMMSLH
RNS Number : 0428F
Marshalls PLC
12 November 2020
Marshalls plc
Trading Update: 12 November 2020
Marshalls plc, the specialist landscape products group (the
"Group"), issues a Trading Update with an improved outlook.
Trading performance
Trading since the half year, has continued to improve and in the
4 months ended 31 October 2020, Group sales have returned to the
same level as 2019 on a like for like basis. The trend of sales
growth has continued to increase during this period and, on a like
for like basis, Group sales in October 2020 were up 5 per cent
compared with the equivalent prior year period. The key drivers of
this growth have been continued strong demand in the Domestic end
market, a return to more normal levels of trading in the Public
Sector and Commercial end market and continued strong growth in the
International market.
For the 4-month period ended 31 October 2020, sales to the
Domestic end market were up 10 per cent on a like for like basis
compared with the prior year. The survey of domestic installers at
the end of October 2020 continued to show a healthy order book of
12.8 weeks (October 2019 10.9 weeks). For the 4-month period ended
31 October 2020, sales in the Public Sector and Commercial end
market were 6 per cent down compared with 2019, on a like for like
basis, which is a significant improvement compared with the first
six months of the year when sales were down 28 per cent. The Group
continues to target those parts of the market where higher levels
of growth are anticipated including infrastructure projects in
Road, Rail and Water Management. For the 4-month period ended 31
October 2020, sales in the International business increased by 22
per cent compared with the prior year, on a like for like basis,
supported by continuing strong sales from Marshalls NV in
Belgium.
The construction and manufacturing sectors are exempt from
England, Scotland and Wales second COVID-19 national lockdown
restrictions. All manufacturing sites are fully operational and our
priority continues to be the safety and well-being of our
employees, suppliers and customers. We continue to ensure that our
health and safety practices are ahead of recommended COVID-19
guidelines.
Repayment of furlough
On 2 October the Group repaid the full amount of all furlough
monies received, amounting to GBP9.4 million.
As previously announced, during the second quarter of the year,
the Board and Executive management agreed to a 20 per cent
reduction in remuneration and other Senior Managers also agreed a
15 per cent reduction. These amounts, totalling GBP120,000, have
subsequently been paid to MacMillan Cancer Support and to MIND who
are the Company's charities.
Balance sheet and liquidity
As at 31 October 2020, and following the repayment of furlough,
the Group had net debt of GBP42.8 million, on a pre-IFRS 16 basis
(GBP53.9 million, 30 June 2020). This is better than expected and
reflects the recent trading performance. We continue to monitor
cash flows closely.
As a result of the good, recent trading levels we have not
needed to access our additional bank facilities or the Group's
approved Covid Corporate Financing Facility ("CCFF") commercial
paper programme. Marshalls liquidity remains strong and will
support our investment priorities going forward.
Outlook
Trading continues to improve and order books are robust.
Although market demand remains uncertain, we remain focused on
developing future growth opportunities and delivering the strategic
objectives in our 5 year Strategy. Our strategy is underpinned by
strong market positions, focused investment plans and an
established brand.
Following the strength of recent trading the Board is improving
its expectations for 2021.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of those Regulations.
Enquiries:
Martyn Coffey Chief Executive Marshalls plc +44 (0)1422 314777
Jack Clarke Group Finance Director Marshalls plc +44 (0)1422 314777
+44 (0)20 3128
Andrew Jaques MHP Communications 8540
Charlie Barker
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, and has operations in Belgium and sales
representation in other international markets. 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
2019.
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