StockMarketWire.com - Landscape products group Marshalls has reported a 25% year on year drop in revenue during the six months to 30 June, but said that recent trading has been better than expected.

In a half-year trading update, the company announced that revenue for the six months ended 30 June 2020 was £210.5m, compared to £280.1m in the same period a year earlier, representing a decrease of 25% year on year.

Marshalls said that trading in June was 'better than expected', with revenue 2% ahead of June 2019, with the benefit of two extra trading days, while on a like-for-like basis, the June average daily revenue was down 7% compared to the prior year period.

But the company called this a 'significant improvement' on April, which was 66% down on a like-for-like basis, and said that the improved level of trading has continued into the early part of July.

It reported 'strong' sales to the domestic end market, with the survey of domestic installers at the end of June 2020 showing a 'healthy' order book of 12.4 weeks, compared to 11.5 weeks in June 2019 and 9.7 weeks in February this year.

In the public sector and commercial end market, Marshalls confirmed that infrastructure sales were strong, but warned of some uncertainty remaining within the housebuilding sector.

Net debt as at 30 June 2020 was £53.9m which it said was ahead of management's base case scenario and reflected the 'encouraging' recent trading performance.

Marshalls said it has not been required to access its additional bank facilities or the approved Covid Corporate Financing Facility (CCFF) commercial paper programme and that it has total bank facilities of £255m, of which £230m are committed, together with an issuer limit of £200m under its CCFF facility.






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