UK share prices have rebounded modestly in midweek trading. Both the FTSE 100 and FTSE 250 indexes are recovering ground following the hefty falls endured in Tuesday business. But their rises have been overshadowed by the terrific progress being made by the Marshalls (LSE: MSLH) share price.
Marshalls touched 771.5p per share at one point in Wednesday business. This was its most expensive since November. The landscape products company has since settled back but, at 763p, remains 6% higher on the day.
Marshalls reports “strong” trading
Marshalls has risen on news that “recent trading has been strong” and that “the improving trend has continued.” During the four months to April, revenue soared 46% year-on-year to £191m.
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The impact of Covid-19 lockdowns helped drive that huge annual improvement. However, sales at Marshalls were also up 6% from the same four months in 2019.
Breaking down the numbers, Marshalls commented that “strong demand in the Domestic end market, improved trading in the Public Sector and Commercial end market and further growth in the International market” were the key drivers for its strong recent performance.
Sales rise across the board
Sales to Domestic markets just about doubled (rising 99%) between January and April, Marshalls said, to £57m. Revenues in this area — responsible for around 30% of the group total — were also up 20% from the corresponding 2019 period.
Meanwhile, sales to its Public Sector and Commercial end markets roared 32% higher from the first four months of 2020, to £122m. This is also “a slight increase” from the same four months period in 2019, the company said, “after adjusting for the impact on sales caused by the planned reduction in Premier Mortar sites in the second quarter of 2020.”
Public Sector and Commercial customers account for around two-thirds of group turnover. And Marshalls said that it plans to continue focussing on higher-growth markets like infrastructure projects in Road, Rail and Water Management.
Finally Marshalls saw sales to International customers soar 27% and 32% from the first four months of 2020 and 2019 respectively.
Full-year profits tipped to beat forecasts
Marshalls also provided an encouraging update concerning the condition of its balance sheet. It said that net debt had dropped below £100m as of the end of April, to £98m. This was down from £112m at the same point in 2020 and £122m in 2019.
Commenting on today’s results, Marshalls said: “The board is encouraged by the sustained increase in demand during the first four months of the financial year.” As a consequence, the business now expects trading in 2021 for the full year “to be ahead of its previous expectations.”
The company noted the Construction Products Association’s recent spring survey, which painted a bright picture for its operations. This predicted an uptick in market volumes of 12.9% in 2021 and 5.2% in 2022.
“This continues to reflect a more positive trading environment and the external purchasing and consumer confidence indicators continue to strengthen,” Marshalls said.
