Marshalls strikes cautious note on outlook as revenues drop
By Michele Maatouk
Date: Tuesday 21 Jan 2025
(Sharecast News) - Marshalls said on Tuesday that full-year profitability would be within the market range, but reported a drop in revenues and struck a cautious note on the outlook.
In an update for the 12 months to the end of December, the landscaping and building products supplier said revenue fell to around £619m from £671m a year earlier in "challenging markets".
Landscaping revenue declined 17% to £268m. Marshalls said the segment delivered a "progressive improvement" in performance during the second half, from the 23% decline at the end of H1 to 9% in Q4.
"The full year performance reflects lower demand from house builders and continued subdued activity in private housing RMI," it said.
The building products arm saw revenue dip 3% to £165m amid weak demand in new build housing.
Roofing revenue ticked up 4% to £186m. Marshalls said fourth-quarter growth was strong at 15%, comprising around 75% growth from Viridian Solar and a return to growth in Marley.
Net debt reduced to £134m from £173m and Marshalls said it expects adjusted pre-tax profit for 2024 to be within the range of markets expectations of £52m to £53.7m.
It also said that profitability in 2025 was set to be ahead of the prior year "with the rate of growth subject to the pace of market recovery and the benefits of the near-term actions being realised".
"The group's business units are well positioned to capitalise on the market recovery, which is expected to build progressively through the year," it said.
"Continued market uncertainty and a £3m increase in costs from higher National Insurance contributions prompt a cautious outlook and consequently the group will maintain its disciplined approach to cost management."
At 0940 GMT, the shares were down 8.6% at 233.51p.
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