Marshalls Regulatory News (MSLH)

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.

Graham Holden

Chief Executive

Marshalls plc

01484 438900

Ian Burrell

Finance Director

Marshalls plc

01484 438900

Jon Coles

Brunswick Group

0207 404 5959

Kate Miller

Brunswick Group

0207 404 5959