Marshalls’ adjusted pre-tax profit flew 221% from £22.5m to £72.1m in 2021, and revenue climbed to £589.3m in 2021 from £469.5m as the landscape product specialist saw demand recover from the pandemic.
In the aftermath of the pandemic, project timelines, supply chain pressures and inflationary costs of input materials were mitigated by a proactive supply chain management initiative.
The group faced operating problems with the supply of raw materials and labour however still managed to report strong financials as they altered the prices by introducing flexibilities in labour and manufacturing practices to match the increase in costs.
Adjusted EBITDA had an increase of 86% to £107.1m in 2021 compared to £57.6m in 2020.
The groups St Ives project is in line with the plan and capital investments of £35m have been allocated to the projects coming in 2022. The capital expenditure however reduced from £30m to £21.9m in 2021.
Net debt declined from £75.6m to £41.1m as the company understood the importance of liquidity and remained discipline in their capital expenditure. Adjusted ROCE increased from 8.2% to 20.6% in 2021.
The groups total dividend is 14.3p including a proposed final dividend of 9.6p in 2021 compared to 4.3p in 2020 as a result of their progressive dividend policy.
Going forward, the company will keep health and safety as a priority in their operations, a practice they focused on during the pandemic.
Martyn Coffey, Chief Executive Officer, Marshalls, “trading remains strong and has continued to improve since the start of the year, notwithstanding ongoing supply chain challenges.”
“Our strong market positions, focused investment plans and established brand underpin the group’s business strategy. We remain confident that our strategy will continue to deliver profitable long ‑ term growth and that we will be able to mitigate raw material shortages and cost inflation through the effective management of our supply chain.”
“Given the strength of recent and current trading the board’s expectations for the current year are now ahead of its previous view.”
Marshalls share were trading up 1.8% to 655p in early morning trade on Thursday.