Marshalls lifts 2021, 2022 expectations after strong growth in H1

Landscape products company Marshalls lifted its expectations for 2021 and 2022 on Thursday as it reported strong growth in the first half amid supportive market conditions.

In the six months to 30 June, pre-tax profit jumped to £38.9m from £1.6m in the first half of 2020 and £37.1m in the same period two years ago. Meanwhile, revenue was up 42% compared to 2020 at £298.1m, and 6% higher versus 2019.

The company declared an interim dividend of 4.7p a share, in line with 2019 but having not paid one in 2020.

Chief executive Martyn Coffey said: "Trading continues to improve and recent order intake has been good. The Construction Products Association's recent summer forecast predicts year on year increases in UK market volumes of 13.7% in 2021 and 6.3% in 2022 and the group expects to meet or outperform the market.

"Market conditions remain supportive, despite certain supply chain challenges, which are leading to inflationary pressures across the sector. The underlying indicators in our main growth markets, including New Build Housing, Road, Rail and Water Management, remain positive. As a result, we remain confident that our strategy will deliver long-term profitable growth and that we are well positioned to cope with the temporary challenges associated with cost and material supply issues."

Marshalls said it was lifting its expectations for 2021 and 2022, "encouraged by the continuing strength in demand and the positive trading environment".