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Marshalls Plc - Half-year Report

Interim results for the half year ended 30 June 2019


Marshalls plc, the specialist Landscape Products group, announces its half year results


Financial Highlights

Half Year ended

30 June 2019

Half Year ended

30 June 2018













EBITDA - reported

EBITDA - pre IFRS 16







Operating profit - reported

Operating profit - pre IFRS 16







Profit before tax - reported

Profit before tax - pre IFRS 16











Basic EPS - reported




Basic EPS - pre IFRS 16








Interim dividend








ROCE - reported

ROCE - pre IFRS 16






Up 140 basis points

Net debt - reported

Net debt - pre IFRS 16








1.   The financial impact of IFRS 16 is summarised below and in Notes 2 and 3.

2.   Alternative performance measures are used consistently throughout this Interim Announcement.  These relate to EBITA, EBITDA and ROCE.  For further details of their purpose, definition and reconciliation to the equivalent statutory measures, see Note 3.



·    Revenue growth of 15% to £280.1 million (2018: £244.3 million)

·    Operating margins slightly ahead to 13.9% (2018: 13.7%)

·    Edenhall performed well in the period and its integration is on track and well advanced

·    The Group's strong cash generation has continued

·    Net debt of £55.6 million (2018: £48.9 million) on a pre IFRS 16 basis

·    Reported net debt of £97.7 million, after the inclusion of £42.1 million IFRS 16 lease liabilities

·    Payment of £23.8 million final and supplementary dividends on 28 June 2019

·    Return on capital employed for the 12 months ended 30 June 2019 of 21.4% (pre IFRS 16 basis)

·    Trading since the period end has remained strong


The newly launched 5 Year Strategy to 2023, as outlined at the Group's Capital Markets Day earlier this year, maintains the objective of delivering sustainable growth. The main elements are:

·    Continued focus on organic growth and investment - capital expenditure of £23 million planned for 2019 to drive growth

·    Increasing momentum in the delivery of the digital strategy through continued investment and continuous improvement

·    Increase in research and development and new product development to drive sales growth

·    Renewed focus on increasing the profitability of the Emerging UK Businesses

·    Continuing to target selective bolt-on acquisition opportunities in New Build Housing, Water Management and Minerals

·    Continued focus on customer service, brand, operational and manufacturing excellence and procurement efficiency

·    Maintaining a strong balance sheet, a flexible capital structure and a clear capital allocation policy

·    Maintaining a 2 times dividend cover policy, enhanced by supplementary dividends


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


"The Group continues to outperform the Construction Products Association's ("CPA") growth figures, despite ongoing political and Brexit uncertainty.  The CPA's recent Summer Forecast predicts a decrease in UK market volumes of 0.3 per cent in 2019, followed by an increase of 1.0 per cent in 2020, while the underlying indicators in the New Build Housing, Road, Rail and Water Management markets remain supportive.  Post period-end trading has remained strong.


The Board believes that the Group's new 5 year Business Strategy will continue to deliver sustainable growth, whilst maintaining a strong balance sheet and a flexible capital structure. The strategy is underpinned by strong market positions, focused investment plans and an established brand.


The Board is increasingly confident of at least achieving its expectations for 2019."