IN A TRADING UPDATE for the six months to 30 June 2023, Marshalls plc, the built environment products manufacturer, warned that its revenues are falling.

The company – which includes Marley Roofing Products – plans to axe up to 400 jobs as it reduces shifts and closes the Group’s factory in Carluke to deliver £9 million of savings.

The Marshalls Board expects to report Group revenue for H1 2023 of £354m, down 13% on a like-for-like basis. If the four months of revenue from Marley, following its acquisition, is included, then the figure is 2% up on last year’s £348m.

Adjusted pre-tax profit for the half year is expected to be around £33m, down 30% on 2022’s H1 figure of £45m.

Marshalls says the result comes against the backdrop of challenging market conditions with persistent weakness in new build housing and private housing RMI, which are its key markets.  The sustained high levels of inflation, increasing interest rates and weak consumer confidence have contributed to the business’s diminished expectations.

Divisional Trading Performance

The update says Marley Roofing Products saw mixed demand across its product offering. While Viridian (Marley’s solar arm) delivered further growth supported by changes in building regulations, this was offset by a weaker performance in roofing. Lower volumes of new build housing meant revenue in the first half of the year was £93 million – a contraction of 7% compared to 2022.

Marshalls Landscape Products has continued to experience tough market conditions and revenue dropped 20% to £174m in H1.

Marshalls Building Products was more resilient with revenue dropping 9% to £87m.

Apart from cutting jobs and capacity, Marshalls is reducing its capital expenditure plans and disposing of surplus land. The company is also focussing on efficient working capital management to reduce the Group’s net debt of approximately £185m at the end of June.

Outlook

Marshalls says it is confident that it is well placed to deliver profitable long-term growth when market conditions improve. However, it does not expect market conditions to improve this year “given the macro-economic backdrop”.

>> Read more about Marshalls in the news

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