Marshalls Regulatory News (MSLH)

Interim Management Statement: 8 November 2012

Creating our own certainty

Trading Performance

Marshalls' revenue for the ten months ended 31 October 2012 was £279 million (2011: £298 million; 2010: £278 million) a decrease of 6 per cent. Current trading continues to be in line with expectations.

Sales to the Public Sector and Commercial end market, which represent approximately 63 per cent of Marshalls' sales, were down 4 per cent and sales to the Domestic end market, which represent approximately 32 per cent of Group sales, were down 13 per cent compared with the prior year period reflecting the record rainfall during the summer months. The Group's International business continues to make progress and is approaching 5 per cent of Group sales.

The survey of domestic installers at the end of October 2012 revealed order books of 8.7 weeks (October 2011: 7.8 weeks) compared with 9.0 weeks in June 2012. Consumer confidence remains reasonably stable albeit at a low level.

Marshalls' targeted growth initiatives continue to deliver encouraging results and the operational restructuring, covered in detail at the half year in August, is being implemented successfully and delivering the expected benefits. The actions being taken are expected to reduce net debt in support of the Group target ratio of two times net debt to EBITDA by the end of 2013.

Dividend

The 2012 interim dividend of 1.75 pence per share, announced on 31 August 2012, will be paid on 7 December 2012 to shareholders registered at the close of business on 26 October 2012.

Outlook

The most recent figures from the Office for National Statistics for the total of Construction Output, for the 8 months to August 2012, indicate a reduction of 8.2 per cent. Against this background, Marshalls is focusing its sales effort on market sectors where activity is strongest, accelerating cost reduction initiatives whilst continuing to invest selectively in a number of growth opportunities. This strategy will provide the Group with greater certainty over its performance in a challenging macro environment. Marshalls retains strong operational and financial flexibility and has the ability to react quickly to changes in market demand.

The next update will be the Trading Update announcement on Friday 4 January 2013.

Enquiries:

8 November 2012

Note to the Editor:

About Marshalls:

Established in the late 1880s, Marshalls is the UK's leading manufacturer of superior natural stone and innovative concrete hard landscaping products, supplying the construction, home improvement and landscape markets. Marshalls provides the product ranges, design services, technical expertise, innovative ideas and inspiration to transform gardens, drives and public and commercial landscapes.

Marshalls operates its own quarries and manufacturing sites throughout the UK, including a national network of manufacturing and distribution sites. As a major plc, Marshalls is committed to quality in everything it does, including the achievement of high environmental and ethical standards and continual improvement in health and safety performance.

Forward-Looking Statements:

Any statements in this release, to the extent that they are forward-looking, are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the markets in which Marshalls operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. More information about the factors that may affect Marshalls' performance is contained in the Annual Report to shareholders for the year ended 31 December 2011.