Landscape products group Marshalls (MSLH) has emerged well from a costly restructuring that wiped out last year's headline profits. Despite the extended winter weather, which affected first-quarter trading, half-year operating profit grew 11 per cent year on year to £9.8m. Moreover, a £10m reduction in inventory levels, and the receipt of £17.5m from the sale of its non-core aggregates business, helped to reduce net debt from £83.8m to £53m.
However, sales to the public sector and the commercial market - that generates nearly two-thirds of group turnover - fell 6 per cent, while domestic sales fell 3 per cent. But, more encouragingly, sales outside of the UK grew by 12 per cent and now account for 5 per cent of group turnover.
Trading in the second quarter showed signs of recovering from the weather-affected first quarter, too. Indeed, Marshalls won two significant Middle East orders and, in Manchester, the group secured its largest ever natural stone paving order. Moreover, signs of a nascent recovery on the retail side were reflected in a sharp rise in the half-year installer order book, to 10.2 weeks - the highest half-year order book since 2004.
Numis Securities expects full-year adjusted pre-tax profit of £13m, giving EPS of 6.6p (from £9.3m and 5.3p in 2012).
| MARSHALLS (MSLH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 152p | MARKET VALUE: | £299m | |
| TOUCH: | 151-153p | 12-MONTH HIGH: | 159p | LOW: 75p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 33 | |
| NET ASSET VALUE: | 91p* | NET DEBT: | 29% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 163 | -11.5 | -4.02 | 1.75 |
| 2013 | 157 | 8.03 | 3.80 | 1.75 |
| % change | -4 | - | - | - |
Ex-div: 23 Oct Payment: 6 Dec *Includes intangible assets of £41m, or 21p a share | ||||
