Financial performance benefitted from decisive actions taken in 2023 to reduce costs and capacity.

Marshalls plc, a leading manufacturer of sustainable solutions for the built environment, announces its results for the half year ended 30 June 2024.

The results show:

  • Resilient Group performance in weak end markets, with the impact partially mitigated by decisive management actions and the benefit of our diversification strategy
  • Landscape Products performance challenging – further self-help actions being implemented at pace
  • Balance sheet strengthened through further reduction in net debt
  • Board believes that the 2024 outturn will be broadly in-line with its previous expectations
  • Capital markets event in November 2024 to set out medium term growth opportunities.

Financial highlights

  • Group revenue reduction was principally driven by Landscape Products reflecting sustained low levels of new build housing and private housing repair, maintenance and improvement spend.
  • Financial performance benefitted from decisive actions taken in 2023 to reduce costs and capacity.
  • Adjusted operating cashflow conversion was strong at 111% on an annualised basis reflecting disciplined working capital management
  • Robust balance sheet with a year-on-year net debt reduction of £28.8 million.

The Board remains cautiously optimistic of a modest recovery in its end markets during the second half of the year predicated on a progressive improvement in the macro-economic environment.

Against this backdrop and with the benefit of decisive management actions taken in 2023, the Board believes that profit and pre-IFRS16 net debt for the full year will be broadly in-line with its previous expectations.

Matt Pullen, Chief Executive, said: “The Group has delivered a resilient performance in weak end markets.  The result in the first half is encouraging and demonstrates that the strategy of diversification, building on the Group’s historic core Landscape Products business, through the acquisition and improvement of less cyclical businesses in recent years, has resulted in a more balanced Group. 

"In addition, we have maintained our focus on tightly controlling costs and working capital.  We are, therefore, pleased to report annualised operating cashflow conversion at 111% and a year-on-year reduction in net debt of £28.8 million, which remains a key capital allocation priority.

"While market conditions affected the Landscape Products result, I have a strong view that the segment’s performance can be substantially improved through a number of self-help measures which we are implementing at pace.  I am excited for the segment’s prospects in a market recovery as it will benefit significantly from operational leverage.

"We are undertaking a review of the Group’s strategy and have identified a number of opportunities to deliver outperformance over the medium term. These include attractive sustainability-driven markets across bricks and masonry, water management and energy transition alongside a cyclical recovery in our core landscape and roofing businesses, supported by the new Government’s commitment to increase housebuilding significantly.

"We remain cautiously optimistic of a modest improvement in the Group’s end markets during the second half of the year predicated on a progressive improvement in the macro-economic environment. Against this backdrop and with the benefit of ongoing management actions, the Board believes that profitability and pre-IFRS16 net debt for the full year will be broadly in-line with its previous expectations.”