Marshalls sees 'encouraging' signs as sales slide eases

The Huddersfield-based natural stone and paving company has been hit hard by the downturn in consumer confidence and the stagnant construction market. It said underlying daily sales revenue for the year was down 16 per cent, leading to revenues of 312m.

However, it saw an improvement between July and December, as sales stabilised with a fall of 11 per cent. Installer order books at the end of October 2009 were an "encouraging" 8.1 weeks. "There are signs that confidence is recovering albeit from a low base," the group said.

Sales to the public sector and commercial market, which are about 58 per cent of Marshalls' sales, were down 18 per cent for the full year and sales to the domestic market were down 13 per cent.

The group said it is targeting sales where activity is more robust, reducing costs and improving efficiency. Cash management and reducing stock and capital expenditure helped drive debt to a better-than-expected 69m.

"The group remains cautious about the short term outlook, especially given the latest industry forecasts for 2010 which continue to predict mid single digit reductions in volume," it said in a statement.

The group has also redeemed 20m of debenture stock, at a cost of 7.3m, to cut interest costs.