Rain forces Marshalls into £7m restructuring
Heavy rain over the past few months has had such an impact on UK commercial and domestic construction projects that block paving producer Marshalls is having to restructure.
The first quarter of the year was good for business but then ‘exceptionally poor working conditions’ began in April and have continued since. Some £10m of sales - equivalent to six days' installations – were wiped out by the weather.
Marshalls' revenue for the six months ended 30 June 2012 of £167m was down 5% on last year’s £177m for the first half but still up on 2010 H1’s £163m.
Contingency measures being taken by the firm include reducing costs, reducing inventories and conserving cash to mitigate the impact of the reduced sales. The one-off charge of £7m is expected to deliver savings of £4m a year
However, the company said that it would ‘continue to invest selectively in initiatives which deliver sales growth and an improving market position including street furniture and security products, internal paving and water management products’.
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This article was published on 6 Jul 2012 (last updated on 6 Jul 2012).