Huddersfield firm sees profits cut by half in crunch

Mar 6 2009 By Andrew Jackson

PAVING stone maker Marshalls today said sales were under more pressure in a tough trading climate as annual profits fell by almost half.

The Huddersfield-based firm said: "The overall demand outlook remains uncertain with current sales volumes continuing to reduce."

Marshalls, whose pre-tax profits fell 46% to £22.5 million during 2008, is also slashing dividend payouts to conserve cash.

In January the firm said it planned to close two concrete plants at Llay in North Wales and Hambrook in West Sussex and cut costs at its consumer arm, putting a total of 135 jobs at risk.

Last year Marshalls also closed concrete factories in Cannock,Staffordshire, and Sawley in Nottinghamshire.

Marshalls' public sector and commercial arm - which accounts for around 59% of revenues - has better visibility, but domestic markets are still weak.

The firm expects a clearer picture of prospects for the year following Easter, although the division - which saw like-for-like sales fall 15% last year - is still at a low ebb.