Pension changes boost demand for Marshall's paving products

LONDON, Aug 26 (Reuters) - British landscape products firmMarshalls has benefited from older people spendingmoney on new driveways and patios after restrictions on pensionsavings were eased last year, it said on Friday.

The British company, which supplied the materials for a newsquare at Kings Cross Station in London, saw the biggest growthin demand from contractors working for domestic customers in itsfirst half, Chief Executive Martyn Coffey said on Friday.

"The domestic side we see as very strong, up 7 percent inthe first six months," he said in an interview.

"Domestic has probably been a bit helped by the pensionrelease, which came in last year. The second quarter was thehighest amount so far, where people are taking 25 percent oftheir pension tax free and are using some of that investment toimprove their homes."

Sweeping reforms to pensions in 2015 gave people aged over55 full control of their retirement savings.

Coffey said Britain's vote to leave the European Union inJune had not had hit demand. "If you look at our sales and ourorders throughout the year, you would not have seen where Brexitoccurred," he said.

The company reported a 21 percent rise in pretax profit to25.1 million pounds ($33 million) on revenue 2 percent higher at202.4 million pounds.

Coffey said the strong profit performance was driven by newproducts - the company has already filed nine patents this year- and efficiency improvements.

Shares in the group, which increased its interim dividend by29 percent to 2.9 pence, were trading up 1.8 percent at 320pence at 0921 GMT, having made up all of the ground they lostafter the Brexit vote in June.

($1 = 0.7571 pounds) (Reporting by Paul Sandle; editing by Susan Thomas)

Marshalls