Marshalls FY on solid ground as public sector boosts profits

Landscaping specialist Marshalls reported a rise in full year pre-tax profits on strong public sector and commercial sales.

Pre-tax profits rose 11% to £69.9m on a 10% increase in revenue to £542m, boosted by the 2018 acquisition of brick maker Edenhall.

Operating margins increased to 13.4%, while net debt halved to £18.7m from £37.4m. The final dividend was increased by 21% to 9.65p a share for a total payout of 18.35p a share with a supplementary dividend of 4p per share.

Marshalls, which makes paving stones and bollards, said sales in the public sector and commercial market, which represent 69% of group sales, rose 15%.

The company said it is closely watching the coronavirus situation, but to date has seen no discernible impact on the business.

"The group has delivered further growth in 2019 despite a period of market slowdown and economic and political uncertainty," said chief executive Marytn Coffey.