More on Marshalls
Marshalls:H1 trading statement
Building materials supplier Marshalls is set to report sales of £185.1m (2004: £172.7m) for the six months to June 2005. Acquisitions and new businesses have contributed to the bulk of the growth, organic growth contributed just 1.3% to sales growth.
Sales to the public sector and commercial market, which represent half of Group
revenue, are reportedly ahead of last year but this was offset by weaker sales to households. Domestic installers’ average order books have shrunk to 8.9 weeks compared to 10.2 weeks at the beginning of the year and 11.9 weeks last
year.
The share trades at 280p, on a prospective PE (2006 earnings) of 12x which is at the upper end of the sector range and looks rather pricey given the weaker outlook. The yield is attractive at 4.7%.
Random picks: ARM | Burren Energy | Countrywide | Firstgroup | HMV | Hammerson | ICI | Intermediate Capital | Stanley Leisure | John Wood