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Paving slab maker Marshalls sees sales crack through £400mln in 2017

Sales in the domestic end business – small-scale, local builders and DIYers – jumped by 12% in the year
paving slabs
Recent acquisition CPM Group has settled in well

Paving slab maker Marshalls PLC (LON:MSLH) saw sales jump almost 10% in 2017 thanks to an uptick in demand from DIYers and local builders.

Group revenue for the year ended December 31 rose 8% to £430mln (2016: £397mln), including a £9mln contribution from CPM Group which it acquired in October.

READ: Marshalls snaps up pre-cast concrete maker CPM for £38mln

That growth was largely driven by a 12% year-on-year increase in sales in the domestic end market which accounts for almost one-third of total revenues.

Excluding the impact of CPM, sales in the public sector and commercial end market – which make up the bulk of the business – grew 2% compared with 2016.

Marshalls said it will continue to focus on new build housing, water management and rail projects – areas where it expects to see “higher levels of growth”.

The FTSE 250 company added: “Good progress has been made on the self-help capital investment programme, the development of new products and the group's digital strategy.

READ: Marshalls reports good growth in first half profit, remains confident of achieving 2017 expectations

“These organic projects have been complemented by the acquisition of CPM with its planned integration on track with our expectations.”

Marshalls – which is worth just shy of £900mln – noted in its update that the Construction Productions Association had reduced its 2018 forecasts reflecting wider economy uncertainty, but said its own sales figures continue to outperform CPA expectations.

Shares rose 1.8% to 455p on Wednesday morning.

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