MARSHALLS PLC group revenue for the year ended 31 December 2023 was £671m, dropping 13% while Marley turnover dropped by 9% on the previous year.

Marshalls’ performance reflects lower demand from house builders and continued subdued activity in private housing RMI, the company says. In a full year trading update, the business reports the Group’s performance in the last quarter of the year was as anticipated and expects adjusted profit before tax for the full year to be in-line with its expectations.

Marley Turnover

Reporting on its three divisions, Marley Roofing Products’ revenue was £180m in 2023 (May to December 2022: £132 million), which represents a reduction of 9% on a like-for-like basis.

Marshalls Landscape Products’ revenue was £321m compared to £394m in 2022, which is a reduction of 18%.  On a like-for-like basis, after adjusting for the disposal of Marshalls NV in April 2023, revenues contracted by 16%.

Marshalls Building Products’ revenue was £170m down 12% from 2022’s turnover of £193m.

Management Actions

During the year, Marshalls’ management took action aiming to improve agility and right-size the business through reducing capacity and costs.  This included the closure and mothballing of factories, a reduction in shifts and capacity in other facilities, and a reorganisation of commercial and support functions.  These actions are expected to deliver net annualised savings of around £11m – £2m more than previous estimates.

Other actions include the review of capital expenditure plans, disposal of surplus land generating around £7m, and reducing net debt to £170m by focusing on working capital and cash management.

Marshalls says its management balanced the need to reduce capacity and the cost base in the short-term while retaining the flexibility to increase production when demand recovers.

Marshalls sees its market position, established brands and investment plans as driving ongoing operational improvement. It says it remains confident that the long-term market growth drivers and key strategic initiatives will underpin profitability improvement when markets recover.  The company says it is encouraged by recent inflation trends and their impact on interest rate expectations, which should support improvements in its end markets in 2024.

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