7th Jan 2008 07:00
Marshalls PLC07 January 2008 Trading Statement: Year Ended 31 December 2007 Marshalls plc, the specialist Landscape Products Group, is providing thefollowing trading update for the year ended 31 December 2007. Trading Performance Marshalls' revenue from continuing operations for the year ended 31 December2007 increased 7 per cent to £403 million (2006: £378 million). On a like forlike basis, revenue from continuing operations was up 4 per cent at £393 million(2006: £378 million). Acquisitions contributed £10 million to Group revenue. Like for like sales to the Public Sector and Commercial market, which representover half of Marshalls' sales, were 7 per cent ahead of 2006. Like for likesales to the Domestic market were slightly ahead having been particularlyadversely affected by the unusually wet weather in June and July. Marshalls will be announcing its results for the year ended 31 December 2007 on7 March 2008 and expects these results to be in line with expectations. Group Developments We continue with our strategy of investing for growth and productivityimprovement. During 2007, we have invested £12 million of capital inacquisitions, particularly for the Public Sector and Commercial market, and afurther £14 million of capital in initiatives to boost organic growth. Thisinvestment is additional to ongoing replacement and improvement expenditure. In addition, a number of our growth initiatives, particularly LandscapeInstallations, involve significant up front revenue investment which we continueto charge against profit. Natural Stone Much of the above capital investment has been to expand our Natural Stonebusinesses. We have acquired and invested in a business operating in North EastEngland and Scotland to widen our geographical coverage in sandstone walling andreconstituted stone walling. We have also invested to develop a walling stoneplant in West Yorkshire. We have extended our geographical coverage in aggregates with the acquisition ofa quarry in the South West, direct capital investment to develop a sand andgravel deposit near Manchester, and the completion of an additional investmentin West Yorkshire. We have also doubled the number of facilities around the country for our nichePremier Mortars business which supplies ready-to-use mortar in small quantitiesdirect to building sites. Street Furniture We have acquired a small business supplying highly specified seating which hasbeen integrated into our existing Street Furniture business. Landscape Installations Most of the revenue investment has been to develop our Landscape Installationsbusiness. Our fourth Display Centre for gardens and driveways opened in Enfieldin August. A further Display Centre in Oldham opened in November and one inBicester opened in December 2007. We expect to have a total of nine operationalDisplay Centres by Spring 2008. Outlook Based on recent contract awarded data, the outlook for 2008 in the Public Sectorand Commercial market is positive. In the Domestic market, installer order booksfrom the latest survey at the end of October 2007 were an encouraging 9.9 weeks(2006: 9.1 weeks). Enquiries: Graham Holden Chief Executive Marshalls plc 01484 438900Ian Burrell Finance Director Marshalls plc 01484 438900 Jon Coles Brunswick Group 0207 404 5959Kate Miller Brunswick Group 0207 404 5959 7 January 2008 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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