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Marshalls PLC shares fell on Wednesday after the company cautioned of uncertainty ahead and said that revenue in its domestic market took a hit.
Shares in the company were trading 8.3% lower at 540.30 pence each on Wednesday morning in London. It was the worst FTSE 250-listed performer.
The Elland, England-based landscaping products company said revenue in the four months to April 30 was up 5% at £201 million compared to the same period in 2021. Marshalls explained that the growth was supported by the implementation of price increases at the start of 2022.
It also noted that it achieved the growth despite one less trading day compared to 2021 and record seasonal sales volumes in March and April last year.
Revenue in the public sector & commercial end market totalled £137 million in the period, up 12% year-on-year. The sector represents 68% of group revenue and performed strongly in the four months, with particularly good sales in Civils & Drainage and Bricks & Masonry.
In the domestic market, on the other hand, revenue dropped 9% to £52 million, due to a reduction in installer capacity in March and April, despite end-customer demand being buoyant. The sector represents 26% of its total revenue.
‘There was a reduction in installer capacity in March and April compared to the prior year, largely due to more holidays being taken in 2022 compared to 2021 when the country was in lockdown. The comparative picture is expected to progressively normalise during the remainder of the year,’ the FTSE 250-listed firm said.
Marshalls stated that the Construction Products Association's - a UK construction industry trade association - recent spring forecast predicts an increase in UK market volumes of 2.8% in 2022 and 2.2% in 2023.
This is a ‘modest reduction’ from the previous winter forecast that reflects a more uncertain trading environment, it added.
Marshalls still said it is confident of achieving its 2022 expectations, which have been increased to include a material contribution from pitched roof system manufacturer Marley Group PLC. Marshalls completed the £535 million in late April.
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