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(Alliance News) - Marshalls PLC on Thursday said its profit dropped in 2020, but it has experienced a recovery in operations so far in 2021.
The FTSE 250-listed hard landscaping products company reported a decline in 2020 revenue to GBP469.5 million from GBP541.8 million a year earlier, with pretax profit plummeting to GBP4.7 million from GBP69.9 million in 2019. When excluding operational restructuring costs and asset impairments, pretax profit was down to GBP22.5 million.
The company said its operational restructuring exercise was completed in the first half of 2020. This increased its manufacturing efficiency and operational flexibility, with fixed costs reduced by GBP12 million per annum.
Marshalls recommended a final dividend of 4.3 pence a share, having paid no final dividend a year ago.
Due to the impact of Covid-19, the company withdrew its previously announced 2019 final and supplementary dividends. In addition, Marshalls did not propose an interim dividend during 2020. Its interim payout for 2019 was 4.70p.
Marshalls said trading has started strongly in 2021, with sales at the end of February up 7% and orders up 12% compared to the same period in 2020.
"Despite wider market uncertainty, the underlying indicators in our main growth markets of New Build Housing, Road, Rail and Water Management remain positive," noted Chief Executive Martyn Coffey.
"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," added Coffey.
Marshalls shares were trading 6.7% higher in London on Thursday at 745.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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