Elland firm Marshalls enjoys ‘better than expected’ trading after sales fall

The Elland-based firm has seen an improving pattern since the lockdown in late March – revenue was down just 7 per cent in June, a significant improvement on the early part of the Covid-19 outbreak. In April (the first full month of lockdown), sales fell 66 per cent.

Trading has improved further since the half-year end, with revenue in July increasing to 94 per cent of the 2019 comparative period. In August, it reached 100 per cent.

Martyn Coffey, Marshalls’ chief executive, said: “Although business confidence and market demand remain uncertain, recent trading has been better than expected and continues to improve.

“Our restructuring programme is now complete and the new bank facilities have further strengthened the group.

“The decisive actions that have been taken have improved the efficiency and flexibility of our plants and will help Marshalls to emerge from the current market difficulties in a stronger competitive position.”

In May, Marshalls said it could axe up to 400 jobs following the decision to permanently close some of its operating sites amid a sharp drop in demand caused by the Covid-19 crisis.

The firm has been in consultation with employees to reduce staff numbers by up to 15 per cent.

The group said its operational restructuring exercise is now complete, resulting in the closure of manufacturing sites and overhead reductions across the group.

Marshalls confirmed that 15 per cent of its total workforce have been impacted and manufacturing facilities in Falkirk, Llan, and Livingston have been closed.

Revenue fell from £280m to £211m in the six months to June 30.

Sales to the public sector and commercial market fell 28 per cent. The group is targeting areas where higher levels of growth are anticipated, including infrastructure projects in road, rail and water management.