19th Aug 2021 09:33
(Alliance News) - Marshalls PLC on Thursday reported a swing to pre-pandemic profit levels after "good" recent order intake, duly raising its expectations for 2021 and 2022 as a result.
The Elland, West Yorkshire-based firm, which manufactures natural stone and concrete hard landscaping products, was a FTSE 250 best performer in London on Thursday. Shares were up 2.1% at 772.50 pence.
Marshalls swung to a pretax profit of GBP38.9 million in the first half of 2021 from a loss of GBP16.0 million a year before. Pretax profit for the same period in 2019 was GBP37.1 million.
Interim revenue was GBP298.1 million, up 42% from GBP210.5 million in 2020 and up 6.4% from GBP280.1 million in 2019.
Marshalls was hit by industry-wide supply chain issues in the six months which led to inflationary pressures, noting periods where cement was on supply allocation and raw material availability was reduced.
Despite shortages, the company saw half-year international sales climb 11% compared to 2020 and up 27% compared to 2020.
"The group continues to develop its global supply chains to ensure that international operations are sustainable and aligned with market risks and opportunities," said Chief Executive Martin Coffey.
Marshalls declared an interim dividend of 4.70 pence, unchanged from 2019. It paid no dividend in 2020.
"Trading continues to improve and recent order intake has been good," Coffey added. "The Construction Products Association's recent summer forecast predicts year on year increases in UK market volumes of 13.7% in 2021 and 6.3% in 2022 and the group expects to meet or outperform the market."
By Josie O'Brien; [email protected]
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