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10 Nov 2009 07:00
Interim Management Statement: 10 November 2009
Continuing emphasis on cash management, cost reduction, innovation and sales opportunities.
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Trading Performance Marshalls' revenue for the ten months ended 31 October 2009 was close to expectations at £277 million (2008: £339 million) from three fewer working days compared with the same period in 2008. Underlying daily sales revenue, on a like for like basis, was down 17 per cent and similar to the Construction Industry forecasts. Sales to the Public Sector and Commercial market, which represent approximately 57 per cent of Marshalls' sales, were down 18 per cent and sales to the Domestic market were down 15 per cent compared to the prior year. Current Priorities As the trading environment remains challenging, Marshalls continues to focus on driving sales, cost reduction and cash generation. Reductions in stock and capital expenditure ensure that net debt continues to be in line with plan. As part of our contingency planning, a temporary "lay off" plan has been put in place which, if required, would reduce costs whilst significantly reducing the need for further redundancies. Redemption of Debenture Marshalls Group plc, a subsidiary of Marshalls plc (LSE Code: MSLH.L), has announced today that it will, subject to approval of its debenture stockholders, redeem in full its £20 million 11 3/8 per cent Debenture Stock 1992/2014. The redemption of the Debenture Stock prior to its maturity date will enable the business to benefit from a lower interest cost in the short to medium term. Marshalls has recently renewed its short term working capital facilities and a small committed facility that was due to expire in September 2009. Marshalls has significant committed facilities in place with a positive spread of medium term maturities. Outlook Marshalls remains cautious about the short term outlook, particularly in light of industry forecasts for 2010 which predict mid single digit reductions in volume. The stabilisation in the Domestic market continues with installer order books at the end of October 2009 at 8.1 weeks (2008: 6.4 weeks; 2007: 9.9 weeks). Marshalls continues to balance short term performance with the need to maintain its market leading operating capability. The remaining manufacturing plants have a good geographical spread, are efficient and well invested. In addition, the business has retained the ability to increase output when demand improves without requiring any significant capital expenditure. Marshalls continues to invest selectively to build on its leading position in its core markets, its strong brand, its efficient manufacturing and sourcing infrastructure and its extensive national logistics network to ensure the business is well positioned for when markets improve. |
Enquiries:
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Graham Holden |
Chief Executive |
Marshalls plc |
01484 438900 |
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Ian Burrell |
Finance Director
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Marshalls plc |
01484 438900 |
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Jon Coles |
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Brunswick Group |
0207 404 5959 |
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Kate Miller |
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Brunswick Group |
0207 404 5959 |
10 November 2009
Note to the Editor:
About Marshalls plc (LSE Code: MSLH.L) and its subsidiary Marshalls Group plc.
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 network of regional manufacturing and distribution service centres and 2 national manufacturing and distribution sites. As a major plc, Marshalls is committed to quality in everything it does, including environmental and ethical best practice 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 plc 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 plc performance is contained in the Annual Report to shareholders for the year ended 31 December 2008.
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