Coronavirus Update

Marshalls Plc - Final Results 2020

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Marshalls plc

Strong recovery - positioned well for sustainable growth

Marshalls plc, the specialist Landscape Products group, announces its full year results for the year ended 31 December 2020.

Financial Highlights

Year ended

31 December 2020

Year ended

31 December 2019

Results before operational restructuring costs and asset impairments1

 

 

 

Revenue

 

£469.5m

 

£541.8m

EBITDA

Adjusted operating profit

£57.6m

£27.2m

£103.9m

£73.7m

Profit before tax

Basic EPS

Recommended final dividend

£22.5m

8.60p

4.30p

£69.9m

29.36p

-

 

 

 

ROCE

Net debt

Net debt - pre-IFRS 16

 

Adjusted operating profit

Operational restructuring costs and asset impairments

Statutory operating profit

 

8.2%

£75.6m

£26.9m

 

£27.2m

£(17.8)m

£9.4m

 

21.4%

£60.0m

£18.7m

 

£73.7m

-

£73.7m

 

Statutory results

 

Statutory operating profit

Profit before tax

Basic EPS

 

 

£9.4m

£4.7m

1.19p

 

 

£73.7m

£69.9m

29.36p


Note:
1.  Alternative performance measures are used consistently throughout this Preliminary Announcement.  These relate to EBITA, EBITDA, return on capital employed ("ROCE"), net debt and results before operational restructuring costs and asset impairments. Following the transition to IFRS 16, reference has been made to "pre-IFRS 16" and "reported basis," the latter referring to amounts required under IFRS 16. For further details of their purpose, definition and reconciliation to the equivalent statutory measures, see Note 2.

Operational highlights

· Priority given to health and safety throughout the COVID-19 crisis

·   Trading has started strongly in 2021 - at the end of February, sales are up 7% and orders are up 12% compared to
same period in 2020

· Focus on servicing our customers

·   Operational restructuring exercise completed in H1 2020 - increased manufacturing efficiency and operational flexibility, with fixed costs reduced by £12 million per annum

· Maintained focus on innovation, ESG priorities, sales opportunities and sustainable growth over the medium term

· Capital investment of £30 million planned for 2021

Financial highlights

· Progressive growth in sales over the second half of 2020 - sales in quarter 4 ahead of prior year

· Re-instatement of dividends - final dividend of 4.30 pence recommended

· Full year revenue of £469.5 million (2019: £541.8 million)

· Strong growth in Domestic sales - growth of 9 per cent in H2 2020

· Increase in International sales of 16 per cent

· Strong balance sheet and a flexible capital structure

· Full repayment of all Government Coronavirus assistance (furlough and deferred VAT)

Commenting on these results, Martyn Coffey, Chief Executive, said:

"Trading has started strongly in 2021. At the end of February, sales are up 7 per cent and orders are up 12 per cent compared to same period in 2020. The CPA's winter base case scenario predicts an increase in UK market volumes of 14.0 per cent in 2021 and 4.9 per cent in 2022. Despite wider market uncertainty, the underlying indicators in our main growth markets of New Build Housing, Road, Rail and Water Management remain positive.

Although market demand remains uncertain, we remain focused on developing future growth opportunities and delivering the strategic objectives in our 5 year Strategy. Our strategy continues to be underpinned by strong market positions, focused investment plans and an established brand. Marshalls' liquidity is strong and will support our investment priorities going forward.

Encouraged by the strong trading performance, the Board is raising its expectations for 2021."