The group said it had benefited from continued strong demand in the public sector and commercial market as it achieved sales of £403 million in 2007, a rise of 4 per cent when a £10 million boost from acquisitions is stripped out.
Huddersfield-based Marshalls expects profits for the year to be in line with expectations and said it had made a positive start to the new financial period.
Marshalls said like-for-like sales at its domestic business, which supplies DIY and installed products, were slightly ahead of a year earlier, with demand affected by the exceptional summer rainfall.
The public sector and commercial market, which delivers more than half of the company's sales, improved 7 per cent during 2007.
The firm, which has carried out paving work on projects including the new Wembley Stadium and the O2 Arena in London, posted a 9 per cent increase in pre-tax profits to £27.4 million in the first half of the year.
Marshalls remains confident for 2008 with encouraging order books in the domestic market and a positive outlook in the public sector.
The firm is working through a strategy to overhaul its domestic business with the opening of 10 new garden and driveway display centres in 2008.