PROLONGED heavy rain has hit sales for paving supplier Marshalls plc.

Birkby-based Marshalls, which also has operations in Elland and Brighouse, saw revenue slump by 7% to £309m during 2012, partly due to the rainfall holding up work during what would normally be busy summer months for the group.

But the group is eyeing the opportunities of extreme weather – with its water management products earmarked as a potential growth area for the business.

Chief executive Graham Holden said devices to both preserve water and drain gardens and driveways had seen double-digit growth in each of the last five years.

In its latest update, Marshall also said its international business continued to make steady progress and has grown to represent almost 5% of group sales.

But sales to the public sector and commercial end market, which account for about 63% of Marshalls’ sales, were down by 6% while sales to the domestic end market, which represent about 32% of group sales, fell by 12% compared with 2011.

Mr Holden said a shake-up of the business, announced in July, was completed ahead of schedule and the cost reduction benefits were being delivered as expected.

The group close its plant in Maltby, South Yorkshire, this summer in a cost-saving move which hit about 50 staff.

It also made a “small percentage” of job cuts among its 2,300 employees across the wider business after reporting a 38% plunge in half-year pre-tax profits to £7.6m.

Mr Holden said: “The decisive and proactive actions taken by Marshalls in 2012 in response to continuing uncertainty about the market environment have reduced both fixed costs and net debt.”

Cash generated by the sale of surplus property sales, a reduction of stock and lower capital spending had resulted in net debt being cut from £77m to £64m.

Mr Holden said: “Despite the challenging economic background, Marshalls continues to target growth markets within the public sector and commercial end market.”

In the domestic end market, where Marshalls provides stone for drives and patios, consumer confidence remained reasonably stable, albeit at a low level.

Mr Holden said Marshalls continued to develop its list of registered installers. A survey of domestic installers at the end of October, 2012, revealed order books of 8.7 weeks compared with 7.8 weeks at the same time last year.