PAVING stone supplier Marshalls reported a healthy rise in revenue during 2011, according to a trading update from the Birkby-based group.

Marshalls, which also has operations at Elland and Brighouse, lifted revenue by 8% to £334m last year.

That compares with takings of £309m in 2010.

Sales to the public sector and commercial users – which represent about 60% of Marshalls’ total sales – rose by 9% while sales to the domestic market were up by 7% on the previous 12 months. International sales rose from 1% to 3% of group sales.

Chief executive Graham Holden said cash management remained “a central priority” with a continuing focus on spending, stock control and working capital.

However, Marshalls continued to invest in the medium-term – expanding its international interests in 2011 with investments totalling £8m.

The group said that had resulted in net debt at the end of the year totalling £77m against £67m for 2010.

Mr Holden said sales remained encouraging in the final quarter of 2011 – despite the uncertainty about general economic conditions.

He said: “The group continues to develop sales initiatives, including targeted marketing and product innovation in the public sector and commercial end market, installer initiatives and distributor merchandising in the domestic end market and specialist landscape products into selected international end markets.”

Mr Holden said Marshalls had “reasonable visibility” of demand in the first half of 2012 with continuing strength in the commercial sector offsetting weakness in the public sector. In the domestic end market, volumes remained subdued against a background of low consumer confidence.

The survey of domestic installer order books at the end of October, 2011, showed 7.8 weeks of work against 8.1 weeks for the same time in 2010 and 7 weeks at the end of June, 2011.

Mr Holden said Marshalls, which has supplied paving for the Olympic Stadium in London and the Olympic Village, was underpinned by solid assets with good operational and financial flexibility.

“Selective investment in new products and services and in new markets and growth opportunities is being balanced with careful cost management,” he said. “As these sales figures show, our initiatives are delivering additional sales and this creates confidence for the future.”

Marshalls’ preliminary results will be unveiled on March 9.