15th Aug 2019 08:17
(Alliance News) - Paving stones maker Marshalls PLC on Thursday posted a 14% year-on-year rise in first-half profit and said that it is increasingly confident of at least achieving expectations for 2019, with trading strong.
"The group continues to outperform the Construction Products Association's growth figures, despite ongoing political and Brexit uncertainty," Chief Executive Martyn Coffey said, adding that the company's new five-year business strategy will continue to deliver sustainable growth, whilst maintaining a strong balance sheet and a flexible capital structure.
Under the five-year strategy to 2023, Marshalls hopes to extend its growth by focusing on organic growth and investment, with capital expenditure of GBP23 million planned for 2019. It also intends to make bolt-on acquisition opportunities in New Build Housing, Water Management and Minerals.
For the six months to June 30, Marshalls recorded pretax profit of GBP37.1 million, up from GBP32.5 million a year ago, on revenue of GBP280.1 million and GBP244.3 million, respectively,
Earnings before interest, taxes, depreciation and amortisation increased 32% year-on-year to GBP54.9 million for the first half.
The rise in first half earnings was attributed to 21% year-on-year jump in sales to the Public Sector & Commercial end-market, including sales by brick maker Edenhall Holdings Ltd, acquired in December 2018. The Public Sector & Commercial division represents 68% of group sales for Marshalls.
First half sales to the Domestic end-market, which represents 27% of group sales, increased by 3% year-on-year. International business sales rose 14%.
Marshalls declared an interim dividend of 4.70 pence per share, up 18% from 4.00p paid a year ago.
Shares in the company were up 1.3% at 623.00 pence each in London on Thursday morning.
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