Marshalls’ shares plummet as firm warns of slowdown in sales
Shares in building materials manufacturer Marshalls fell almost 20 per cent today after the firm warned of a slowdown in sales due to faltering demand.
The West Yorkshire firm said its outturn will be “slightly below the bottom end of the current range of market expectations” as its sales start to slow.
The warning comes after Marshalls posted revenues of £544m for the nine months ending on 30 September, up 20 per cent on the previous year.
The 20 per cent uptick in revenues came as Marshalls’ acquisition of pitched roof tile maker Marley in April boosted the firm’s takings. On a like for like basis, Marshalls revenues increased four per cent.
The firm’s revenues were boosted by higher sales from its building products business, which surged 22 per cent to £149m, of which revenues from Marley contributed £84m.
However, sales from Marshalls’ landscaping business, which makes up a larger proportion of its revenues, dropped six per cent to £311m amid a softening of demand.
Marshalls said sales from its landscaping business fell 16 per cent in the third quarter alone, due to plummeting demand from the private housing sector.