Marshalls share price rises after beating expectations

 
Oliver Gill
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Marshalls has provided paving to Trafalgar Square (Source: Getty)

Shares in paving specialist Marshalls rose over three per cent after beating half-year market expectations.

Revenue rose by eight per cent to £219.1m, while profit before tax jumped by 16 per cent to £29.1m.

Chief executive Martyn Coffey said the Construction Products Association (CPA) forecasts indicated better growth in the summer than had been suggested in the spring.

He added: "The group continues to outperform the CPA growth figures and the underlying short to medium term market indicators remain supportive. The CPA's 2018 forecast has recently been reduced, which reflects the continuing wider economic uncertainty."

Read more: Profits soar at landscape gardening specialist Marshalls

Shore Capital Markets analyst Robin Speakman said: "Digging into the detail, UK domestic end market continues to be the engine for both organic revenue and margin growth."

Coffey continued: "The group continues to invest in product innovation and service delivery initiatives and is well placed to drive through further sustainable improvements in operational efficiency gains.

"The board believes that Marshalls' innovative product range and strong market positions will continue to support growth and operational profit improvements during the delivery of the 2020 strategy and will drive future shareholder returns. The Group's focus remains the delivery of the growth initiatives set out in the 2020 Strategy, whilst maintaining a strong balance sheet and a flexible capital structure.

Read more: Marshalls in first half sales jump as building booms

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