Marshalls reinstates dividend as revenue bounces back

Elland, West Yorkshire-based stone and landscaping firm Marshalls plc on Wednesday confirmed its intention to re-instate dividend payments as it reported revenue growth has “progressively improved” since the half year and sales in the most recent months were ahead of comparative figures for 2019.

“The key drivers continue to be strong demand in the domestic end market, a return to more normal levels of trading in the public sector and commercial end market and continued strong growth in the international market,” said the company in a trading statement.

Marshalls revenue for the year ended December 31, 2020, fell to £469 million from £542 million in 2019.

In its outlook, Marshalls said: “Trading continues to improve and order books remain strong.

“The board anticipates out-turns for 2020 and 2021 modestly above current expectations.

“We continue to monitor closely any risk to demand due to the worsening COVID situation in Q1.

“We are taking appropriate and timely measures to best mitigate any impact.

The board intends to issue its full year preliminary announcement on 11 March 2021.

Although market demand remains uncertain, we remain focused on developing future growth opportunities and delivering the strategic objectives in our 5 year strategy.

“Our strategy is underpinned by strong market positions, focused investment plans and an established brand.”

Marshalls added: “The board has confirmed its intention to re-instate dividend payments, commencing with a final, full year dividend for 2020. 

“Distributions will be in line with the group’s stated objective of dividends covered twice by earnings over the business cycle.”