Marshalls (MSLH) had some success last year in reducing costs to match the weaker economic environment. But there was little the specialist landscape products group could do to mitigate against the record rainfall - 2012's wet weather reduced sales by around £13m. Restructuring and redundancy costs of £21.5m accounted for the headline loss but, adjust for that, along one-off disposal gains of £1.9m and an estimated £3.3m profit loss due to bad weather, and operating profit fell by a more palatable 10 per cent at £15.3m.
Of the group's two operating divisions - serving the retail and commercial sectors - the retail side was more affected by the bad weather, and sales there fell 12 per cent. The commercial sector, which now accounts for two-thirds of group sales, was more resilient, with sales falling just 6 per cent. However, the group continued to expand its international business, acquiring two operational sites in Belgium, where sales grew by 35 per cent - non-UK sales are now approaching 5 per cent of group sales. Group finances improved, with the reduced cost base having helped to support underlying margins, while net debt fell 18 per cent to £63.5m.
Broker Numis Securities expects 2013 adjusted pre-tax profit of £14.2m and EPS of 6.5p (from £10.4 and 5.9p in 2012).
| MARSHALLS (MSLH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 110p | MARKET VALUE: | £217m | |
| TOUCH: | 109-110p | 12-MONTH HIGH: | 113p | LOW: 75p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | na | |
| NET ASSET VALUE: | 91p* | NET DEBT: | 35% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 378 | -4.50 | -4.00 | 5.40 |
| 2009 | 312 | -2.40 | -0.40 | 5.25 |
| 2010 | 309 | 10.4 | 4.20 | 5.25 |
| 2011 | 334 | 13.7 | 3.78 | 5.25 |
| 2012 | 310 | -11.2 | -2.91 | 5.25 |
| % change | -7 | - | - | - |
Ex-div: 5 Jun Payment: 5 Jul *Includes intangible assets of £41.4m, or 21p a share | ||||
