BUILDING products firm Marshalls revealed a near-50% fall in annual profits as the tough trading climate hit demand.
The Birkby-based company, which also has operations at Elland, said pre-tax profits fell by 46% to £22.5m in 2008.
It said it was slashing dividend payments to conserve cash – warning that the outlook for demand was uncertain while current sales volumed continued to fall.
In January, Marshalls announced plans to close two concrete plants in North Wales and Sussex, putting 135 jobs at risk. That follows the closure of concrete factories in Staffordshire and Nottinghamshire last year.
Marshalls said domestic markets were still weak but that prospects were clearer for its public sector and commercial arm, which accounts for about 59% of total revenues.
Chief executive Graham Holden said low consumer confidence continued to hit the domestic market. The short-term winter weather conditions and distributors reducing their inventories had distorted the underlying picture further.
Marshalls is the biggest player in the domestic driveway and patio market – targeting a potential 8.9m.
The firm said its cost-cutting moves, which also involve scaling back capital spending by about half, would help it weather the storm and leave it well-set for an upturn.
As the credit crunch hits first-time buyers and brings housebuilding to a virtual standstill, Marshalls’ installers said they had noticed trends towards older customers and the home improvement market.
Marshalls, which sponsors of the Chelsea Flower Show, saw shares edge ahead following the update as analysts hailed a “creditable” performance.
