Marshalls lifts FY expectations amid strong demand
Marshalls said on Wednesday that trading for the full year was set to be ahead of its previous expectations amid increased demand.
In an update for the four months to 30 April, the landscape products company said trading has been strong and the improving trend has continued.
Group revenue rose 46% from the same period a year ago to £191m, and was 6% higher compared with the same four-month period in 2019. Marshalls said the key growth drivers were strong demand in the domestic end market, improved trading in the public sector and commercial end market and further growth in the international market.
The company said trading continues to improve and order books are strong. It also noted that the Construction Products Association's recent Spring forecast predicts a 12.9% increase in UK market volumes in 2021 and a 5.2% rise in 2022.
"This continues to reflect a more positive trading environment and the external purchasing and consumer confidence indicators continue to strengthen," Marshalls said.
"The board is encouraged by the sustained increase in demand during the first four months of the financial year and now expects trading for the full year to be ahead of its previous expectations."
At 0950 BST, the shares were up 5% at 759p.
Numis, which rates Marshalls at 'buy', said: "In our view this is a robust update and it is clear Marshalls is capturing the strong RM&I (repair, maintenance and improvement) trends currently prevalent in the UK."