However, Marshalls still managed to buck the trend and increase its sales rise 4% overall in 2010. In the year to 31 December Marshalls had sales of £323m, up from £312m in 2009.
Sales to the public sector and commercial market, which accounts for 59% of sales, were up 6% on 2009. Sales to the end market were up 1%.
In a trading update the company said that its markets had now stabilised and its marketing and sales initiatives were delivering positive results. “The short term outlook remains encouraging with good order books and a positive order flow,” it said.
The company added: “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% 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.”
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