Marshalls forecasts better-than-expected results

Landscaping and paving group Marshalls cheered investors with a forecast of better-than-expected profits as the UK construction market recovered.

Marshalls, which supplies building products to householders as well as local councils and private firms, said revenue rose 18% to to £312m in the 10 months to 31 October as orders and sales continued to increase strongly in all its markets.

"If the positive market conditions continue, it is likely that the full year results will be above current market expectations," Marshalls said in a trading update.

Sales to the public sector and commercial market, which now make up about 63% of Marshalls' sales, were up 21% on a continuing basis.

Marshalls said it continued to target those parts of the market where higher levels of growth were anticipated, such as rail, home, landscape water management and internal natural stone flooring.

Sales to the domestic market, making up about 31% of group sales, rose a tenth compared with the same time last year.

A survey of domestic installers at the end of October revealed order books of 11.9 weeks against 11 weeks a year ago compared with 11.5 weeks at the end of June.

Marshalls also said it had made progress in developing its international business.

Shares rose 8p or 4.15% to 201p at 09:26 in London.