Marshalls delivers record FY sales and adjusted profitability

Paving company Marshalls said on Thursday that it had delivered record sales and adjusted profitability in 2021, reflecting sustained heightened demand post-Covid-19 lockdowns.

Marshalls saw a 26% year-on-year increase in revenues to £589.3m, while adjusted underlying earnings were up 86% at £107.1m, and adjusted pre-tax profits surged 180% to £76.2m. Adjusted earnings per share were a whopping 233% higher at 28.6p.

The FTSE 250-listed firm said it had a "strong balance sheet", with a flexible capital structure and a clear capital allocation policy, and highlighted that net debt had been cut from £75.6m at the end of 2020 to £41.1m a year later.

As a result of its solid full-year performance, Marshalls proposed a final dividend of 9.6p - giving rise to a total dividend for the year of 14.3p per share.

Marshalls, which said it had experienced continued momentum in trading during the first two months of 2022, added that internal guidance for the current year was now ahead of previous expectations.

Chief executive Martyn Coffey said: "Trading remains strong and has continued to improve since the start of the year, notwithstanding ongoing supply chain challenges. At the end of February, revenues were up 13% and order volumes up 5% compared to the same period in 2021.

"Our strong market positions, focused investment plans and established brand underpin the group's business strategy. We remain confident that our strategy will continue to deliver profitable long‑term growth and that we will be able to mitigate raw material shortages and cost inflation through the effective management of our supply chain."