Shares in Marshalls were up on the FTSE All Share after the paving construction company reported a rise in revenue in the full year to 31 December, despite the poor weather at the end of the year.
Revenue was reported as rising four per cent in the year to £323 million, with sales to the public sector and commercial clients accounting for 59 per cent of sales.
The group said that second half underlying sales performance had been "encouraging". However the snow at the end of the year dampened its earlier success, cutting an estimated £5 million off the group's sales. The impact of the snow on operating profit was put at £0.8 million.
Marshalls said that its net debt had fallen slightly during the year from £69 million at the end of 2009 to £67 million.
In an outlook statement Marshalls, said, "The Group's recent sales trends indicate that our markets have now stabilised and that our marketing and sales initiatives are delivering positive results. The short term outlook remains encouraging with good order books and a positive order flow. In the Domestic end market, installer order books at the end of October 2010 were consistent at 8.1 weeks (2009: 8.1 weeks). In the Public Sector and Commercial end market it is encouraging that our lead indicator continues to suggest an increase in the level of demand as we move through 2011. In contrast, the Construction Products Association's latest forecasts, which include the impact of the Comprehensive Spending Review and recent weaker consumer confidence figures, anticipate a 2 per cent fall in construction output in 2011.
"Despite the difficulty in forecasting and the uncertainty as to the likely speed of recovery, the Group has operational flexibility for the medium term and is well placed financially and operationally to respond to changing market conditions."
By 11:35 shares in Marshalls were up 1.24 per cent on the FTSE All Share to 102.00 pence per share.