Trading Statement

Marshalls PLC 09 January 2006 Trading Statement - Twelve Months to 31 December 2005 Marshalls' revenue from continuing operations, including acquisitions, in the twelve months to 31 December 2005 increased 9% to £359 million (2004: £328 million). On a like for like basis, revenue from continuing operations was up 1% at £332 million (2004: £328 million). Acquisitions contributed £27 million. Sales to the public sector and commercial market, which represent half of Group revenue, were 4% ahead of 2004 and demand remains robust. Sales to the domestic sector of the market were down 1% with particular weakness in sales of products for the DIY market. Installer order books, from the latest survey at the end of October 2005, were at a satisfactory 8.6 weeks (2004: 10.2 weeks). The Preliminary Announcement of Group results, which are expected to be in line with market expectations, will take place on Friday 10 March 2006. Group Developments Two acquisitions were completed in the second half of the year. Paver Systems, a concrete products business which broadens our product range in Scotland, was acquired for £8.7 million on 2 September 2005. On 2 November 2005 the business and assets of Stoke Hall Quarry, a natural sandstone reserve in Derbyshire, were acquired for £3.1 million. The closure of a production unit at Mansfield which did not form part of our unique National Manufacturing and Regional Service Centre network was completed in December 2005. Productivity gains resulting from recent capital investment had resulted in surplus capacity that is not required. The sale of one of our surplus properties was also completed in December 2005 for proceeds of £4.4 million. The profit generated by this sale will cover the additional costs associated with the closure of the production unit at Mansfield. Graham Holden, Chief Executive, commented: 'Marshalls is pleased to be announcing a resilient performance in challenging market conditions, reflecting the breadth of our markets, the product range and also the considerable investment we have made in productivity improvements, and the Marshalls brand, over recent years'. Graham Holden Chief Executive Marshalls plc 01484 438900 Ian Burrell Finance Director Marshalls plc 01484 438900 Jon Coles Brunswick Group LLP 0207 404 5959 Sarah Lindgreen Brunswick Group LLP 0207 404 5959 This information is provided by RNS The company news service from the London Stock Exchange

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Marshalls (MSLH)
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