Marshalls posts record start to the year
Marshalls (LON:MSLH) has raised its expectations for the coming year as an increase in the number of people doing up their homes resulted in a record breaking start to the year for the landscaping firm.
The company posted a 13.5% drop in its revenue during 2020, to £469.5m, a result of lower sales in the first half of the year.
However, sales recovered during the second half, as Q4 revenue surpassed that of the previous year.
Sales were up 7% at the end of February, while orders increased by 12% from the year before. This led Marshalls to raise expectations for the remainder of 2021.
Having not paid an interim dividend in 2020 due to the impact of the pandemic, Marshalls proposed a final dividend of 4.30p.
Neil Shah, director of research at Edison Group, draws attention to some factors which me be of interest in the coming year:
“Investors will keep a keen eye on the planned delivery of £5million of research and development expenditure, including long-term investment of £20million in a flagship site in St. Ives. Close attention should also be paid to progress of the e-commerce trading model launched in April 2020, which is expected to double throughout 2021, reflecting wider trends towards online retail that will most likely continue to be seen across sectors,” said Shah.
Commenting on these results, Martyn Coffey, chief executive, said:
“Trading has started strongly in 2021. At the end of February, sales are up 7 per cent and orders are up 12 per cent compared to same period in 2020. The CPA’s winter base case scenario predicts an increase in UK market volumes of 14.0 per cent in 2021 and 4.9 per cent in 2022. Despite wider market uncertainty, the underlying indicators in our main growth markets of New Build Housing, Road, Rail and Water Management remain positive.”
“Although market demand remains uncertain, we remain focused on developing future growth opportunities and delivering the strategic objectives in our 5 year Strategy. Our strategy continues to be underpinned by strong market positions, focused investment plans and an established brand. Marshalls’ liquidity is strong and will support our investment priorities going forward.”
“Encouraged by the strong trading performance, the Board is raising its expectations for 2021.”
