Marshalls on path to £75m payout

MARSHALLS, Britain's biggest paving-stone maker, is to return £75m to shareholders in a financial restructuring after another year of income and profits growth.

The capital return, planned over the next six months, is worth about 45p a share. It comes on top of a 10% rise in the annual dividend to 11p. Director and founding family member John Marshall should pick up about £310,000.

Marshalls today reported a 2% increase in pretax profits to £50.4m after £1.4m of goodwill write-downs and a 2.2% rise in group revenue to £349.5m for the year to December.

The search is continuing for a replacement chairman for Christopher Burnett, who last year announced plans to retire.

Burnett said today: 'Following the return of around £75m to shareholders, Marshalls will still have sufficient financial flexibility to take advantage of future investment opportunities.'

The capital return is being done in a tax-efficient way with a holding company being formed and shareholders offered ordinary and redeemable shares.

Private investors will be able to take advantage of the full capital gains tax allowance that can be used to offset gains from the buyback of the redeemable shares.