StockMarketWire.com - Marshalls reported that the impact of severe weather resulted in a reduction in sales by an estimated £9m.

In common with the rest of the industry, the severe weather conditions in this period have had a significant impact on sales with snow and ice making ground working difficult and our factories having to be closed for a number of days.

Marshalls revealed revenue for the four months ended 30 April 2018 was up 10% at £149m (2017: £135m).

Sales in both the domestic and public sector and commercial end markets were strong in the weeks not impacted by the weather.

Sales in the domestic end market, which represented approximately 29% of group sales, were significantly impacted by the severe weather and were down 2% compared with the same period in the prior year.

The survey of domestic installers at the end of April 2018 revealed order books of 10.9 weeks (2017: 12.7 weeks) which compared with 10.8 weeks at the end of February 2018.

Sales in the public sector and commercial end market, which represented approximately 66% of Group sales, were up 18% compared with the same period in the prior year.

Good progress continues to be made in executing the 2020 Strategy and the self help programme to drive organic growth is progressing well.

The group continues to target those parts of the market where higher levels of growth are anticipated, including new build housing, water management and rail.

CPM, which was acquired in October 2017, continued to trade strongly and the integration is progressing in line with our expectations.

OUTLOOK

The Construction Products Association slightly reduced its 2018 forecast in the recent Spring Update, which reflects wider economic uncertainty.

The Board believes that Marshalls' innovative product range and strong market positions mean the group is well placed to deliver continued future growth.

Notwithstanding the effects of the severe weather, the Board remains confident of delivering its 2018 expectations.




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