Revenue up but profit down at products business
Building products firm Marshalls says it is not expecting an improvement in market conditions this year, as it published its interim results.
Earlier this year, the business predicted a boost to housebuilding and infrastructure as 2025 progressed, but in results for the six months to 30 June 2025 it adjusted its forecast.
“Mindful of continuing uncertainty in the macro-economic environment, the board currently sees no improvement in market activity levels through the remainder of 2025,” it said.
However, it said that looking further ahead it was “encouraged” by the government’s commitment to new housing and infrastructure investment.
Marshalls’ revenue for the half year stood at £319.5m, 4% up from the £306.7m recorded in the same period the year prior.
The increase in revenue was driven by growth in “both Building and Roofing Products, partially offset by modest contraction in Landscaping Products”.
The profitability of the Landscaping Products business was also reduced, impacted by “targeted investment in pricing, a less profitable product mix and manufacturing inefficiencies in natural stone”.
Nonetheless, it said the acceleration of its “programme of manufacturing footprint optimisation and overhead reduction” in this business was expected to deliver annualised cost savings of £9m by 2026.
>> Read more: Slowly does it: where is this elusive growth for construction?
“The Landscaping Products improvement plan is firmly underway, and we have made solid, early progress with operational improvements,” said chief executive Matt Pullen.
“Whilst profit was below expectations, we have strengthened customer relationships and seen volume growth in the first half.”
Overall, reported profit before tax stood at £18.1m, down 37% from £28.9m. Adjusted pre-tax profit was also down, 17% to £22m from £26.6m.
Company guidance is for adjusted profit before tax for 2025 to be in the range of £42m and £46m.
No comments yet