13th Jan 2021 08:47
(Alliance News) - Marshalls PLC on Wednesday reported a progressive improvement in revenue growth as a result of a return to "more normal levels" of trading in the second half of its financial year.
The FTSE 250-listed West Yorkshire, England-based landscape products manufacturer said 2020 revenue was down 13% to GBP469 million from GBP542 million the year prior.
Sales to Marshalls' Domestic end market were up 9% in the six months ended December 31 compared to the same period last year.
Sales to the Public Sector and Commercial end markets during the period were down 6% compared with 2019. This compares with the first six months of the year when sales were down 28%, it added. The level of commercial orders in the fourth quarter exceeded those during the prior year, it said.
Marshalls said it has a net debt of GBP27 million as at December 31, which is up from GBP19 million last year. Despite this, the company said the figure is "significantly better than expected" and is after both the repayment of GBP9.4 million of furlough money and GBP11.3 million of deferred VAT in the final quarter of the year, meaning that it has repaid all UK government coronavirus assistance and funding it received.
In addition, the company said it will begin construction of its flagship dual plant block at the St Ives site this year, reflecting its increasing market confidence. Approximately GBP20 million will be invested in the dual plant block over three years.
Looking ahead, Marshalls said it anticipates its 2020 and 2021 out-turns to be "modestly" above market forecasts. The company also confirmed plans to reinstate dividend payments, after postponing them last year due to the coronavirus pandemic, with a final dividend for 2020. However, the exact amount has not yet been disclosed. For comparison, a 4.70p dividend was paid for the first half of 2019.
Marshalls said it intends to publish its full-year results on March 11.
Shares in Marshalls were down 0.9% at 709.84 pence in London on Wednesday.
By Zoe Wickens; [email protected]
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