A trading update to the City today revealed revenue for the six months to June 30 was down 5% at £167m compared to £177m last year.

The firm said: “After a good first quarter, the exceptionally poor working conditions experienced in April 2012 continued through to the end of June.”

Marshalls blamed the bad weather for some of the fall but underlying sales to the public sector and commercial market -which represent 64% of the firm’s business – were 2% below last year but “broadly in line with expectations”.

Sales to the domestic market were down by 14%

Bosses at Marshalls are now “reducing costs, reducing inventories and conserving cash to mitigate the impact of the reduced sales.”

The cost-cuts will lead to a one-off charge of £7m but will save £4m a year.

Marshalls said it will continue to invest in growth markets including street furniture and security products, internal paving and water management products.

Marshalls will announce its results for the half year ended 30 June 2012 on Friday August 31.