For the six months to 30th June 2019 Marshalls grew revenue by 15% to £280.1m (2018 H1: £244.3m) and pre-tax profit by 14% to £37.1m (2018 H1: £32.5m).
Operating margins improved slightly to 13.9%, from 13.7% last year.
Most of the sales growth came in the public sector and commercial end market. Excluding the impact of Edenhall, these sales increased by 10% compared with 2018 H1. Including Edenhall, sales to the public sector and commercial end market increased by 21% and represented 68% of group sales. Sales to the domestic end market – 27% of group sales – increased by just 3%. Exports increased by 14% and accounted for the remaining 5% of group sales.
Chief executive Martyn Coffey said: “The group continues to outperform the Construction Products Association’s growth figures, despite ongoing political and Brexit uncertainty. The CPA’s recent Summer Forecast predicts a decrease in UK market volumes of 0.3% in 2019, followed by an increase of 1.0% in 2020, while the underlying indicators in the new build housing, road, rail and water management markets remain supportive. Post period-end trading has remained strong.
“The board believes that the group’s new five-year business strategy will continue to deliver sustainable growth, whilst maintaining a strong balance sheet and a flexible capital structure. The strategy is underpinned by strong market positions, focused investment plans and an established brand. The board is increasingly confident of at least achieving its expectations for 2019.”