FTSE 250 listed Marshalls Plc (LON: MSLH) to Reinstate Dividend Payment

  • January 13, 2021 12:52 PM GMT
  • Hina Chowdhary
    Director, Equities Research Hina Chowdhary
    1378 Posts

    Hina Chowdhary is the Director, Equity Research at Kalkine and has an extensive experience of about 15 years in the area of Research, which includes 5+ years in Equities Research particularly.She has earned a Master of Science degree from the renowne...

FTSE 250 listed Marshalls Plc (LON: MSLH) to Reinstate Dividend Payment

Summary

  • The company witnessed strong demand in home improvement in the Domestic end market as sales surged by 9 per cent during the six-month period ended 31 December 2020
  • The company has decided to reinstate dividend pay-outs with a final dividend for 2020
  • Marshalls has decided to begin construction this year of its dual plant block at the St Ives site 

The UK's leading manufacturer of superior natural stone and innovative concrete hard redesigning products, Marshalls Plc (LON: MSLH) has disclosed its intention of reinstating dividend pay-outs soon.

2021 seems to have begun on a positive note as the markets are reclaiming lost wealth. Dividend seeking investors are anticipating companies to resume dividend pay-outs soon as the period of drought seems to have ended as the UK has turbocharged its Covid-19 vaccination programs with approval of three Covid-19 vaccines, a first in the world.

Marshalls, the FTSE 250 listed Constructions & Materials company has re-visited the trading levels seen in the pre-pandemic times. As a result, the company is anticipating a progressive improvement in revenue growth in the second half of the financial year 2020.

Due to lifestyle changes induced by the pandemic, the company witnessed strong demand in home improvement in the Domestic end market as sales surged by 9 per cent during the six-month period ended 31 December 2020. The company witnessed usual trading in the Commercial end market, Public Sector undertakings and International market. However, England-based landscape products manufacturer’s revenue was 13 per cent down to £469 million in 2020 (2019: £542 million).  

Also read: Can FTSE 250 Listed Marshalls Deliver A Strong Recovery Post Restructuring?

The debt on the balance sheet of the Marshalls has gone up substantially to £27 million as of 31 December 2020, up from £19 million in last year. Despite the rising debt levels, the company has repaid all the government provided coronavirus aid and funding it received. During the final quarter of 2020, the company paid £11.3 million of deferred VAT along with £9.4 million repayment of furlough money.

The company has gained confidence with improved trading and has decided to start construction this year of its doyen dual plant block at the St Ives site to achieve its next leg of growth. This manufacturing facility, which would be one of its kind in the UK, would cost the company around £20 million over the course of three years from inception.

2020 and 2021 are expected to give modest growth for the company, helping to beat the market forecasts marginally. The company has therefore decided to restore dividend pay-outs with a final dividend for 2020. However, there is still no information on the amount that would be paid to the shareholders.  The company is expected to release its final results on 11 March 2020. Shares of Marshalls Plc were down 2.81 per cent from the previous day close, trading at GBX 698 on 13 January 2020 at GMT 11:49 AM+1. 

 


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