Marshalls (LSE:MSLH) PLC, an external landscaping products business, reported higher revenue in the first four months of this year and said it was confident that it could pass on higher input costs to its customers and meet its full-year expectations.
However, the FTSE 250 group also highlighted that the Construction Products Association (CPA), an industry body, had recently lowered its forecast for growth in construction output. The CPA predicted 2.8% growth in construction output this year, revised down from the 4.3% growth forecast three months ago.
Marshalls (LSE:MSLH) said the CPA revision reflected a more uncertain trading environment.
Shares in Marshalls were down 8% at 541.5 pence in midmorning trade, after falling as much as 11%.
Group revenue for the four months to end-April rose 7% from the year-earlier period to £201mln and was supported by the successful implementation of price increases at the start of 2022.
“The group continues to operate in an inflationary environment and it remains confident that input cost increases can be passed on through the supply chain,” it said in a trading statement.
The 142-year-old company, which acquired Marley Group PLC in April, said it remained focused on developing future growth opportunities.
“The board is confident of achieving its 2022 expectations, which have been increased to include a material contribution from the acquisition of Marley.”