Marshalls backs full-year expectations as revenue rises 10%

Marshalls reported a 10% jump in group revenue on Thursday as it sounded an optimistic note on future trading and backed its expectations for the full year.

In an update for the year to the end of December, the paving specialist said group revenue rose to £542m from £491m the year before. Excluding the impact of Edenhall, which it bought in December 2018, revenue was up 3%.

Marshalls said sales in the public sector and commercial end market, which represented about 69% of group revenue, rose 15%.

"The performance of Edenhall has been strong and the integration plan is substantially complete," it said.

Sales in the domestic end market represented approximately 26% of group revenue and were flat on the year but ahead of the overall domestic market in 2019.

Marshalls said the domestic market was softer in the second half and hit by poor weather. "However, continued execution of the 2020 strategy more than compensated by improving group margins," it said.

During the year, the company launched its new five-year business strategy. "The objective continues to be to deliver sustainable growth, whilst maintaining a strong balance sheet with a flexible capital structure and a clear capital allocation policy," it said.

Marshalls backed its full-year expectations and said the outcome of the General Election had created "a more certain political environment". In addition, underlying indicators in the new building housing, road, rail and water management markets remain supportive.