Marshalls doubles pre-tax profits on UK construction sector recovery
UK paving and residential flooring supplier Marshalls benefited from the recovery in the sector by doubling pre-tax profits in 2014, prompting the group to increase output volumes of concrete slabs.
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Marshalls' revenue from continuing operations rose 17% at £358.5m last year, while sales to the public sector and commercial end market, which represent approximately 64% of group sales, were up 20% for the year on a continuing basis.
As a result, pre-tax profit rose 72% to £22.4m. The figures reflect strong orders from rail and housing projects. Marshalls’ domestic market sales, which accounts for homeowners building new driveways and patios, grew by 9%
Improving economic conditions in the UK have boosted earnings for building material firms and house builders. The upbeat tone prompted Marshalls to pay a dividend of 4p per share, up from 3.5p per share in 2013.
"2014 has been a strong year for Marshalls with significant revenue and profit growth," said chief executive Martyn Coffey. "Trading conditions remain positive and the group continues to experience strong order intake and sales growth in all its end markets,” he said.
Last week’s strong UK construction data which hit a four-month high reflects the upbeat tone across the industry.
Coffey said 2015 has started well “with sales in January and February up 13% against the prior year comparatives.We are planning for further progress in 2015 against a background of continuing favourable market conditions."
Broker Numis said Marshalls results were slightly ahead of expectations.
“In our view, the outlook remains highly positive. The company should continue to see good organic top-line progress driven by underlying market growth, new products and market share gain,” added Numis.