Marshalls Regulatory News (MSLH)

Interim Management Statement: 15 May 2012

Trading Performance

Marshalls' revenue for the four months ended 30 April 2012 of £106 million was 3 per cent lower than last year (2011: £109 million; 2010: £98 million).

After a satisfactory first quarter, sales did not show their usual post Easter uplift. Working conditions in April were disappointing, hampering sales and obscuring underlying market trends. The rainfall in April of 138 mm* (2011: 14 mm; 2010: 27 mm) has been an important factor in the reduction in sales of £5 million (equivalent to 3 days' installations) in the month compared with last year.

Sales to the Public Sector and Commercial end market, which represent approximately 64 per cent of Marshalls' revenue, were flat. Sales to the Domestic end market were particularly hit by the bad weather and were lower by 8 per cent compared with the prior year. However, the survey of domestic installers at the end of April 2012 revealed a higher backlog of demand with order books of 7.5 weeks (2011: 7.1 weeks) up from 6.3 weeks at the end of February 2012 (2011: 7.2 weeks). Consumer confidence at the end of April 2012 was consistent with April 2011.

The Group's International growth strategy is progressing well and to plan.

Outlook

The Construction Products Association continues to forecast a small reduction in UK market volumes in 2012 and against this backdrop the Group remains cautious about the short term outlook.

Marshalls has built increased financial and operational flexibility into its business in recent years and remains encouraged by the continuing strength of the private Commercial end market, which has offset weakness in Public Sector, and the resilience of the installer order book. The positive impact of targeted growth initiatives should continue to mean that Marshalls is well placed to outperform the market.

* Source: Met Office: England and Wales rainfall in mm

Enquiries:

15 May 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.