05March2024

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Marshalls says its Domestic Landscaping Market Remains Subdued

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Marshalls have released a trading update with revenues for the year ended 2011 up by 8%. Interestingly, domestic sales rose 7%. Marshalls don't however separate international domestic sales from the UK market but reading between the lines, reading this: "In the domestic end market volumes remain subdued against a background of low consumer confidence."

Suggests that the UK domestic market's outlook hasn't improved significantly.

Do you do hard landscaping? What's your view on the hard landscaping market and what's your view on the prospects for 2012?

Marshalls' full statement below:

Marshalls' revenue for the year ended 31 December 2011 increased by 8 per cent to £334 million (2010: £309 million).

Sales to the public sector and commercial end market, which represent approximately 60 per cent of Marshalls' sales, were up 9 per cent and sales to the domestic end market including domestic international sales, on a continuing basis, were up by 7 per cent compared to the prior year. Sales into international end markets grew from 1 per cent to 3 per cent of group sales.

Cash management remains a central priority with a continuing focus on capital expenditure, stock control and the management of monetary working capital. The Group, however, continues to invest for the medium term. In 2011 Marshalls expanded its international interests and made a capital expenditure and working capital investment of approximately £8 million. As a result net debt at 31 December 2011 was £77 million (2010: £67 million).

Outlook

Sales remained encouraging in the final quarter of 2011 despite the uncertainty that prevailed at the macro economic level. The group continues to develop sales initiatives including targeted marketing and product innovation in the public sector and commercial end market, installer initiatives and distributor merchandising in the domestic end market, and specialist landscape products into selected international end markets.

In the public sector and commercial end market there continues to be reasonable visibility of demand for the first half of 2012 with continuing strength in commercial offsetting weakness in public sector.

In the domestic end market volumes remain subdued against a background of low consumer confidence. The survey of domestic installer order books at the end of October 2011 showed 7.8 weeks (2010: 8.1 weeks) compared with 7.0 weeks at the end of June 2011.

Commenting on this trading update, Graham Holden, Chief Executive, said:

"Marshalls has a solid asset underpin with good operational and financial flexibility. Selective investment in new products and services and in new markets and growth opportunities is being balanced with careful cost management. As these sales figures show, our initiatives are delivering additional sales and this creates confidence for the future".

Source: Landscape Juice - Marshalls says its Domestic Landscaping Market Remains Subdued