A HUDDERSFIELD-based firm has warned that a slowdown in the DIY sector was likely to continue until next year.
Marshalls, which produces concrete and stone products for garden patios, pavements and drives, said its pre-tax profits fell 5.6% to £38m last year.
Income from the domestic market - including the DIY sector - fell 1.3%.
But revenues from sales to the public sector and the commercial market - which makes up half group earnings - climbed 3.7%.
Total like-for-like sales rose 1.3% to £332.7m while revenue from continuing operations, including acquisitions, went up 9.4% to £359.3m.
Marshalls unveiled its results as the Construction Products Association industry grouping predicted that public sector and commercial work would continue to grow this year and next.
It said building work for the 2012 London Olympics would provide a boost from 2008.
But the association forecast a 1% fall in the DIY market this year, before growing by 3% in 2007.
Marshalls, which has its head office in Birkby, said the £65m sale of its clay products section to Hansons last year helped reduce debt by more than half during 2005.
Marshalls also bought Scottish driveway supplies firm Paver Systems and a stone quarry in Derbyshire.
Marshalls added that it was looking at other potential takeover targets.
It has opened a new centre in Falkirk, central Scotland, where customers can see its products in a show home-style setting.
Similar centres will open in Cheshire and Bedfordshire.
Chief executive Graham Holden said Marshalls was "well positioned to operate in the challenging market conditions anticipated in 2006 and to take advantage of the expected market improvements in 2007".
Marshalls operates from 26 sites across the UK and employs some 3,000 people.
