Elland paving specialist Marshalls sees revenue rise 7 per cent to £201m

Paving specialist Marshalls said its revenue for the four months ended April 30, 2022, up 7 per cent at £201m against the same period last year, on an equivalent days' basis.

By Ian Hirst
Friday, 13th May 2022, 9:19 am
Updated Friday, 13th May 2022, 9:21 am
Warrington Time Square, a project that Marshalls worked on

It came against a strong comparator period, which included record seasonal sales volumes in March and April 2021, and was supported by the implementation of price increases at the start of 2022.

Revenue in the public sector and commercial market for the four months ended April 30, 2022, was £137m and accounted for 68 per cent of group sales.

It represents an increase of 14 per cent compared with the same prior year period on an equivalent days' basis, which reduces to 12 per cent on a reported basis.

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The Elland-based firm said sales have been particularly strong in civils and drainage and bricks and masonry and the strength of the concrete brick performance has been particularly encouraging, with a strong new build housing market underpinning this demand.

Marshalls added that it continued to focus on areas of the market where higher levels of growth are expected - new build housing and infrastructure projects in road, rail and water management.

Revenue in the domestic end market, which represented approximately 26 per cent of group sales, was £52m - a reduction of 8 per cent compared with 2021 on an equivalent days' basis, and 9 per cent on a reported basis.

Order books remained healthy in a historical context with the survey of domestic installers at the end of April 2022 showing an order book of 19.4 weeks, up from 17.2 weeks last year.

However, despite customer demand being strong, there was a reduction in installer capacity in March and April compared to the prior year, largely due to more holidays being taken in 2022 compared to 2021 when the country was in lockdown.

The comparative picture is expected to progressively normalise during the remainder of the year, Marshalls said.

Sales in the international business for the four months ended 30 April 2022 increased by 3 per cent compared with 2021.

The business completed the acquisition of manufacturer and supplier of pitched roof systems to the GB construction market, Marley Group on April 29.

A spokesperson for Marshalls said: "The acquisition strengthens the group's exposure to the cyclically resilient and growing UK RMI end market, which has a strong medium-term outlook underpinned by attractive structural drivers such as the UK's ageing housing stock.

“There is a strong cultural alignment with Marshalls with both businesses employing a similar commercial strategy that focuses on generating pull demand from key specifiers and influencers.

“In addition, there are clear opportunities to leverage Marshalls' operational, manufacturing and sustainability expertise for Marley's business.

“It will operate as a division within the group and the integration process is now well underway.

“Marley has a track record of consistent profit growth and cash generation and has started 2022 strongly, with trading for the first four months of the year ahead of plan and the 2021 comparatives.”

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