STOCKS NEWS EUROPE-Marshalls higher after update

Shares in Marshalls (MSLH.L) top the FTSE Small Cap .FTSC leader board, adding more than 8 percent, after the building materials and landscaping company issues a trading update, with Panmure Gordon repeating its "buy" rating on the stock.

"Whilst the group is clearly operating in very difficult markets, we believe that the groundwork put in place over the past 18 months leaves the business well placed to gain ground on its peer group as we emerge from recession," Panmure says in a note.

The broker says the update demonstrates an improving like-for-like trend, as expected, and notes that this trend should continue to improve in the coming months as we come up against softer comparatives.

The company, which operates its own quarries and sites selling a range of products from mortar and paving to street furniture, says revenue fell to 277 million pounds ($462 million) in the 10 months to end-October.

Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net

($1=.6002 Pound)