Marshalls full-year profit jumps 31%

Specialist landscape products group Marshalls reported a 31% jump in full-year profit on Wednesday thanks to an improvement in operating margins.

In the year to the end of December, pre-tax profit rose to £46m from £35.3m as operating margins improved to 12% from 9.7% and revenue grew 3% from 2015 to £396.9m.

Sales to the domestic end market, which represents 31% of group sales, were up 10% for the year compared with 2015, and were particularly strong in the second half when they rose 14%.

Meanwhile, sales to the public sector and commercial end market, which represent 64% of group sales, were broadly in line with the prior year.

Marshalls said that based on public indicators, it continues to outperform its peers and gain market share.

Basic earnings per share rose 32% to 18.95p and the company’s final ordinary dividend increased 22% to 5.80p per share.

Chief executive Martyn Coffey said: “The group has again delivered significant profit growth in 2016 with the underlying indicators remaining supportive in Marshalls’ main end markets. The Construction Products Association’s recently published Winter Forecast reflected a slight improvement in medium term growth assumptions compared with the Autumn Forecast.

“Marshalls has a strong balance sheet and the group’s innovative product range and strong market positions mean it is well placed to deliver continued growth and operational profit improvements as it implements its 2020 Strategy. Sales and order intake have been strong in the first couple of months of 2017.”

At 0806 GMT, the shares were up up 7.6% to 340.40p.