14th Mar 2019 08:35
LONDON (Alliance News) - Construction and landscaping products maker Marshall PLC hiked its dividend 18% Thursday after 2018 profit and revenue grew ahead of its market, with 2019 also showing "strong" trading to date.
In 2018, pretax profit widened 21% to GBP62.9 million from GBP52.1 million the year prior. This was after revenue rose 14% to GBP491.0 million from GBP430.2 million the year before.
"The group delivered a strong result in 2018 and continues to outperform the Construction Products Association's growth figures, despite ongoing macro-economic and Brexit uncertainty," Marshalls Chief Executive Officer Martyn Coffey said.
"The CPA's recent Winter Forecast predicted a decrease in UK market volumes of 0.2% in 2018, followed by an increase of 0.3% in 2019," Coffey added. "However, our recent trading has been strong and the underlying indicators in the New Build Housing, Road, Rail and Water Management markets remain supportive to our growth strategy and plans."
Marshalls proposed a 8.00 pence per share final dividend, up 18% from 6.80p the year prior. For the full year, the dividend rose 18% to 12.00p from 10.20p the year before. Marshalls also proposed a 4.00p per share supplementary dividend, in line with the year prior.
"Good progress has been made during the year, notably the successful integration of CPM and the ongoing self help programme to drive organic growth and these have been enhanced by the acquisition of Edenhall," Coffey added. "The group's focus remains the delivery of long-term sustainable growth, whilst maintaining a strong balance sheet and a flexible capital structure."
In 2019, Marshalls emphasised it had experienced a "strong trading start" with revenue 16% higher in the first two months of the year.
Shares in Marshalls were 0.3% lower at 544.00p on Thursday.
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