26th Mar 2014 09:41
LONDON (Alliance News) - Landscape products group Marshalls PLC Wednesday reported an increase in profit and revenue for the full year, after reducing its cost base and debt.
The company, which manufactures and supplies landscape, driveway and garden products, said posted pretax profit of GBP13.0 million for 2013, up from GBP9.3 million in 2012, as revenue crept up 2.2% to GBP307.4 million from GBP300.9 million a year earlier.
In 2012, the group undertook a major operational restructuring exercise in order to focus emphasis on financial and operating flexibility. Marshalls said this programme of cost reduction and cash realisation measures is now complete and continues to "deliver positive results".
Taking into account restructuring costs and asset impairments, the company made a total loss of GBP12.3 million in 2012.
Marshalls said it saw 1% growth in the second half in the public sector and commercial end market, which represent 63% of its sales. Sales to the domestic end market, which represents around 32% of group sales, were up 1% on the previous period.
"The strategy combined established and new initiatives to deliver growth, and these have been delivering market outperformance. Manufacturing output can be increased by 25% without the need for any significant capital investment and, as demand is improving, output is being increased," the firm added.
Financially, net debt fell to GBP35.6 million from GBP63.5 million.
In April 2013, the company completed the sale of a number of quarries and associated aggregates businesses to Breedon Aggregates England Ltd for an initial cash consideration at completion of GBP17.5 million, with an additional GBP1.2 million received in the summer.
Looking ahead Marshalls said it will continue to focus on product innovation and service delivery initiatives to drive sales growth in all its end markets "in order to benefit from the operational and financial flexibility that has been built into the group over recent years".
It also said it is well placed to improve trading margins and deliver growth in all its end markets and key focus areas.
The company maintained its final dividend at 3.50 pence per share, making a total dividend for the year of 5.25 pence, again unchanged.
The stock was trading at 184.75 pence Wednesday morning, up 5.25 pence, or 2.9%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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