TIDMMSLH
RNS Number : 2876Y
Marshalls PLC
12 May 2021
Marshalls plc
Trading Update: 12 May 2021
Strong trading and an improving outlook
Ahead of its Annual General Meeting at 11:00 today, Marshalls
plc, the specialist landscape products group, issues a trading
update for the first four months of its 2021 financial year
Trading performance
Recent trading has been strong and the improving trend has
continued. Group revenue in the four months ended 30 April 2021,
was up 46 per cent at GBP191 million against the same period last
year which was impacted by the first UK lockdown (2020: GBP131
million). This represents an increase of 6 per cent compared with
the same four-month period in 2019. The key drivers of this growth
have continued to be strong demand in the Domestic end market,
improved trading in the Public Sector and Commercial end market and
further growth in the International market.
Sales to the Domestic end market, which represented
approximately 30 per cent of Group sales were GBP57 million. This
represents an increase of 99 per cent compared with the prior year
comparative and is up 20 per cent compared with the same period in
2019. The survey of domestic installers at the end of April 2021
continued to show a healthy order book of 17.2 weeks (2020: 9.4
weeks) compared with 19.4 weeks at the end of February 2021.
Sales to the Public Sector and Commercial end market for the
four months ended 30 April 2021 were GBP122 million and represented
64 per cent of Group sales. This represents an increase of 32 per
cent compared with the prior year and a slight increase against the
same four-month period in 2019, after adjusting for the impact on
sales caused by the planned reduction in Premier Mortar sites in
the second quarter of 2020. The Group continues to focus on those
areas of the market where higher levels of growth are anticipated.
These include infrastructure projects in Road, Rail and Water
Management.
Sales in the International business for the four months ended 30
April 2021 increased by 27 per cent compared with 2020 and 32 per
cent compared with 2019. This reflects a continuation of the strong
performance from Marshalls NV in Belgium.
Balance sheet and liquidity
The Group retains a strong balance sheet supported by a flexible
capital structure and maintains good headroom, which will support
its investment priorities going forward.
As at 30 April 2021, the Group had net debt of GBP98 million
(2020: GBP112 million; 2019: GBP122 million). On a pre-IFRS 16
basis net debt was GBP52 million (2020: GBP69 million; 2019: GBP82
million). This reflects the improved recent trading performance and
our continued close monitoring of cash flows.
As previously indicated, the additional short-term bank
facilities established in May 2020 have not been utilised, and
these have now reached maturity. Bank facilities are now at
pre-COVID-19 levels and total GBP165 million, of which GBP140
million are committed.
Outlook
Trading continues to improve and order books are currently
strong. The Construction Products Association's recent Spring
forecast predicts an increase in UK market volumes of 12.9 per cent
in 2021 and 5.2 per cent in 2022. This continues to reflect a more
positive trading environment and the external purchasing and
consumer confidence indicators continue to strengthen. The Board
remains focused on developing future growth opportunities and
delivering the strategic objectives set out in the 5-year Strategy,
whilst ensuring that operations incorporate health and safety
practices that go "over and above" current recommended COVID-19
guidelines.
The Board is encouraged by the sustained increase in demand
during the first four months of the financial year and now expects
trading for the full year to be ahead of its previous
expectations.
Appointment of Non-Executive Director and Board changes
We are delighted to confirm our intention to appoint Avis
Darzins to the Board as an additional Non-Executive Director with
effect from 1 June 2021. Avis will also join the Audit,
Remuneration and Nomination Committees.
Vanda Murray OBE, Chair of the Board, commented: "The Board is
delighted that Avis will be joining Marshalls plc as a
Non-Executive Director. As previously announced, Janet Ashdown will
be stepping down from the Board after our AGM later today, so Avis'
appointment is part of our wider succession planning and will
broaden the Board's experience. Avis has extensive business
transformation and digital experience and will be a valuable
addition to the Board."
In addition, Tim Pile will step down as a member of the Audit
Committee with immediate effect, Tim continues in his role as a
Non-Executive Director on the Board and member of our Remuneration
and Nomination Committees .
Certain information contained in this announcement would have
constituted inside information prior to its release as part of this
announcement.
Enquiries:
Martyn Coffey Chief Executive Marshalls plc +44 (0)1422 314777
Andrew Jaques MHP Communications +44 (0)20 3128 8540
Charlie Barker
Avis Darzins Biographical Notes
Avis is an expert in retail business change, digital channel
expansions and transformation. Avis was, for eight years, a Partner
at Accenture focusing on the retail and consumer products sector,
where she delivered successful profitable growth engagements with
many well-known national and international brands. Avis also
founded her own management consulting practice in 2013 following
four years as Director of Business Transformation at Sky. Prior to
that Avis held business leadership roles at Arcadia, BHS,
Mothercare and Littlewoods. Most recently Avis served as a
Non-Executive Director at Moss Bros Group PLC until the business
transferred to private ownership in June 2020. Avis also spent over
a decade as a board member of retailTRUST, the key
retail-orientated charity and continues her involvement with the
charity as co-chair of their Ambassadors Group. In addition, Avis
joined the Board of Trustees of Barnardo's in December 2020.
Avis Darzins is independent for the purposes of the UK Corporate
Governance Code. Her recruitment follows a formal, rigorous and
objective selection process led by the Nomination Committee with
the help of external consultants Norman Broadbent. This
announcement includes the information required by Listing Rules
9.6.11 to 9.6.13, and there is no information to report under
Listing Rule 9.6.13R (2) - (6) inclusive.
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
2020.
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