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(Alliance News) - Marshalls PLC on Thursday reported revenue ahead of pre-pandemic levels and a sharp increase in annual profit due to supportive market conditions and strong demand in 2021.
In 2021, the West Yorkshire-based hard landscaping products company posted a pretax profit of GBP69.3 million, multiplied from GBP4.7 million posted in 2020 and only just below the GBP69.9 million generated in pre-pandemic 2019.
This was on revenue growth of 26% to GBP589.3 million from GBP469.5 million the year before. Revenue was also up 9% compared to the GBP541.8 million registered in 2019.
Marshalls attributed its "record trading performance" to strong demand for its products and supportive market conditions. The company noted that it achieved this result despite supply chain pressures and raw material and labour shortages. The costs increases were recovered through a mid-year price increase, Marshalls said.
As a result, Marshalls proposed a final dividend of 9.6 pence per share, giving a total payout of 14.3p. This reflects a sharp increase from the 4.3p paid to shareholders for 2020.
Marshalls said that trading in the first two months of the new year continued to be positive, with revenue growth of 13% and its order books remaining strong.
The firm continued that its overall outlook for the construction market also remains positive, despite current geopolitical uncertainties with the conflict in Ukraine.
Marshalls stated that its expectations for 2022 are now ahead of its previous view.
"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," Chief Executive Martyn Coffey said.
Separately, the firm on Thursday named Simon Bourne as chief operating officer, effective April 1. Bourne joined the company in June 2015 as manufacturing director and was subsequently appointed as group operations director in September 2017.
Shares were up 2.2% at 657.92p each on Thursday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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