11th Mar 2016 07:42
LONDON (Alliance News) - Block paving manufacturer Marshalls PLC on Friday said pretax profit grew by more than half in 2015, after strong public sector and commercial market sales lifted revenue.
The FTSE 250-listed company posted a pretax profit of GBP35.3 million for the year ended December 31, up 57% from GBP22.4 million in 2014, as revenue rose 8.0% to GBP386.2 million from GBP358.5 million, with 66% of this coming from its public sector and commercial market sales.
Marshalls said public sector and commercial market sales were up 11% for the year, driven by strong end-market conditions, while sales to domestic markets rose 3.6%. Sales to international markets were up by 2.6% in local currency. However, exchange rate movements meant that, once translated into sterling, these sales slipped to GBP19.0 million from GBP20.0 million in 2014.
At the end of the year, cash and cash equivalents were up at GBP25.0 million from GBP20.3 million the previous year.
Marshalls recommended a final dividend of 4.75 pence per share, which means its full-year dividend is 7.00 pence per share, up from 6.00 pence in 2014. The company also proposed a supplementary dividend of 2.00 pence per share, in light of its strong cash flow, meaning shareholders will receive 9.00 pence per share for 2015.
Marshalls said it has completed phase one of its strategy to return to pre-recession profitability, and has now launched the next phase of its growth strategy which will take it to 2020. It said this phase involved achieving price increases to cover cost increases, an additional capital investment programme of GBP15.0 million to deliver cost savings of GBP5.0 million per year, and achieving sales growth in its smaller UK businesses of at least 10% per annum.
Marshalls added it is increasing investment in its digital strategy, as well as looking for further acquisitions in this phase.
"This has been another good year for Marshalls with significant revenue and profit growth delivered in 2015. This has been matched by a strong cash performance resulting in the increased dividend for this year. Trading conditions remain positive and the group continues to experience positive order intake and sales growth across the business," said Chief Executive Martyn Coffey.
"I am pleased to report that 2016 has started well with order intake up 6.0% against strong comparators and the group is well placed to build on the strong momentum generated in 2015 as we continue to see the combined benefits of Marshalls' operational gearing and the group's growth strategy," Coffey added.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Marshalls