Marshalls takes its medicine as restructuring costs bite

For the year to 31 December 2012, revenue was down 7% on continuing operations to £309.7m (2011: £334.1m). The autumn in sales was attributed to the record rainfall.

Pre-tax profit before restructuring costs and asset impairments was down 24% to £10.4m (2011: £13.7m).

Factor within the £21.5m charge and Marshalls saw a pre-tax lack of £11.2m.

Inventory reduction and property asset sales helped to bring net debt down by 18% to £63.5m.

Rain particularly affected the united kingdom domestic end market, which represents nearly a 3rd of group sales.  Domestic sales were down 6%. Sales within the public sector and commercial end market, accounting for almost two-thirds of total sales, were down 6%.  The international business is being developed and accounts for near 5% of group sales. In 2011 Marshalls bought two operational sites and manufacturing assets in Belgium, via a newly-formed subsidiary.

Chief executive Graham Holden said: “Marshalls acted swiftly and decisively to attenuate both production output and the associated fee base whilst retaining substantial operating and monetary flexibility.”

He added: “The general economic background remains unpredictable and economic forecasts for 2013 are flat.  Commercial demand, particularly from rail infrastructure and residential development, is improving; the installer market is showing good order books; and the group’s international business is delivering strong year on year sales growth.”