Marshalls increases sales by 3%

Marshalls increased sales by 3% in the six months until the end of June, according to a trading statement isued to the Stock exchange this morning.

HSBC forecasted operating profi will rise 3% to £54.7m.

Marshalls shareholders also gained £75m this morning, when the company created a new holding group and issued more than 140m new shares.

The company was affected by a slower market than the same time last year, a spokeswoman said. Sales in its Landscape Products division were hit by bad weather in early spring. Sales in the division increased 3% to £158m.

Sales in Clay Products increased 10% to £17m. The company said historically low industry stocks and an improved product mix benefited prices levels.

Natural Stone performed similar to the same time last year, with sales at £15m. Marshalls said it was supplying fewer large projects compared to the first half of 2003, such as the Trafalgar Square refurbishment.

The group expanded its Street Furniture business in the first half of the year with the acquisition of The Great British Bollard Company and Woodhouse Group, which have combined annual sales of £10m.