Marshalls launches call for £34m cash to bolster balance sheet

May 14 2009 Huddersfield Daily Examiner

BUILDING products firm Marshalls has called on shareholders to help it raise £34m to bolster its balance sheet.

The Birkby-based supplier of stone paving said it was issuing new shares to raise the cash – which would be used to reduce its borrowings and avoid it exceeding current banking facilities.

Shareholders are being offered two new shares for every five existing shares they already hold at 65p.

The move comes as Marshalls, which also has operations at Lowfields in Elland, reported revenues down to £103m for the four months to the end of April 30 against £135m during the same period last year.

Marshalls, which sponsors the Chelsea Flower Show, has axed hundreds of jobs and closed four concrete manufacturing plants as part of cost-cutting measures.