Marshalls Landscaping sales drop - debt increases

I am tending to use Marshalls as a barometer for the UK landscaping industry. Perhaps this is a little unfair that they should get a lot of attention but when you refer to yourself as the 'UK's leading' it does tend to make one's ears prick up.

I am still not convinced that Marshalls have paid sharp attention to the industry trends and I am extremely worried that they have fifty nine percent of their eggs in public sector and Commercial market; I still feel that this area of the market is still to capitulate meaning that Marshalls are still over exposed to the ravages of the market.

I said in one of my previous posts that I felt Marshalls should not abandon the domestic market as a reaction to the economic climate. They decided to focus on public and commercial sales and took the decision to close the point of sales areas at building yards after spending a great deal of effort and money on them.

Choosing now to focus on a 'don't move, improve' message to home owners they seem to be doing a 'U' turn on the previous decision and chasing the market rather than positioning itself to anticipate market demand and market trends.

The consumer is going to be looking at simplicity and themes that centre around family life.

In its final results, Marshalls say that underlying operating profits fell thirty three percent.

Marshalls say that the balance sheet remains strong with net assets at 31 December 2008 of £193.2 million.

With the commercial property market now correcting I cannot help to feel that this asset value will have to be rescheduled leading to further write downs and loss.

Don't take this as investment advice but at .81 pence a share, I think we will be seeing Marshalls share price re-testing the .66pence area some time soon - I personally cannot see an improvement throughout most of 2009.

Take a look at the recent news from the newly created Marhsalls awards. I would rather see Marshalls work with talented designers and landscapers like Kerry Jackson to help beat a path to profits.

I would conduct a poll amongst landscapers and installers and ask them where the market is going and what kind of enquiries they are currently receiving.