Capacity cut by 20% and managed installations division closes as downturn hits manufacturing and landscaping firm

Manufacturing and landscaping firm Marshalls suffered a fall in revenue in 2009 amid difficult economic conditions that forced it to reduce its operating capacity.

The company said in its interim management statement that its revenue for the four months to 30 April was £103m, down from £135m in 2008.

It permanently closed four manufacturing sites during the period as the downturn took hold, reducing its production capacity by around 21%.

Marshalls workers
The manufacturing and landscaping firm noted subdued" activity in the public sector and commercial market

The group's managed installations business was also closed in a bid to save fixed costs, and it ceased commissioning of ready-to-use mortar sites.

Marshalls said it had taken decisive action to conserve cash resources and added that capital expenditure plans had been curtailed. It said lower taxation and pension payments would also conserve cash in the short term.

In its outlook, the group said that the public sector and commercial market, which represented 59% of group revenue in 2008, had become “subdued”, but added that the domestic market had recently performed more strongly than its expectations.