Marshalls PLC PLC (LON:MSLH) has reported good growth in first half revenue and profit and remains confident of achieving its expectations for 2017.
The concrete paving manufacturer posted a 16% rise in pre-tax profit to £29.1mln for the six months to June 30, up from £25.1mln a year earlier, as revenue rose 8% to £219.0mln.
READ: Marshalls hikes dividend as it posts growth in full year profit and revenue
The FTSE 250-listed group said sales to the public and commercial end-markets remained the biggest contributor, accounting for 60% of total sales, up 3% in the period .
It added that the group’s International business was the smallest contributor, reflecting 6% of total sales, but saw the highest rate of growth at 25%, boosted by sales in the Middle East coming from Marshalls' new sales office in Dubai.
Marshalls’ chief executive, Martyn Coffey said: "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.”
He added: "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. The board remains confident of achieving its expectations for 2017.”.
The group will pay an interim dividend of 3.40p per share, up 17% from the 2.90p paid a year earlier.
Shares rise, Numis upbeat
In early morning trading, Marshalls shares were nearly 4%, or 15.5p higher at 416.0p.
In an initial note to clients, analysts at Numis Securities reiterated an ‘add’ rating and 435p price target on Marshalls.
They said: “Marshalls' results are in line with estimates and we have marginally increased estimates for 2017/18 to reflect acceleration in revenue growth.
“Cash generation in H1 was also exceptionally strong which positions the group well for acquisitions and/or special dividends.”
The analysts concluded: “We retain the view that Marshalls looks well placed to continue showing strong cash-backed earnings growth.”