Marshalls benefits as people spend more time at home

The Elland-based firm said that although market demand remains uncertain, it is focused on developing future growth opportunities and delivering the strategic objectives in its five year strategy.

"Our strategy is underpinned by strong market positions, focused investment plans and an established brand," the firm said in a trading update.

Following the strength of recent trading, the firm is improving its expectations for 2021.

Marshalls said that trading since the half year has continued to improve and it also improved in the 4 months to October 31.

Group sales have returned to the same level as 2019 on a like-for-like basis as the firm navigates its way through the coronavirus pandemic.

Sales growth has continued to increase and, on a like for like basis, group sales in October were up 5 per cent compared with the equivalent prior year period.

The company said the key drivers of this growth have been continued strong demand in the domestic market, a return to more normal levels of trading in the public sector and commercial market and continued strong growth in the international market.

In July, August, September and October, sales to the domestic market rose 10 per cent on a like-for-like basis compared with the prior year.

The survey of domestic installers at the end of October showed a healthy order book of 12.8 weeks, up from 10.9 weeks in October 2019.

Many homeowners have chosen to spend money updating their outdoor space at a time when people are spending much more time at home.

Analyst Graeme Kyle at Shore Capital said: "We understand that group like-for-like growth in November is at a similar level to October (+5 per cent) and has not been materially impacted by Lockdown 2.

"We expect to modestly increase our 2020 revenues forecast. Our 2021 forecasts are already materially above consensus. We are comfortable with this as it reflects our long-standing more optimistic outlook for construction demand."