Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Marshalls PLC said trading in its latest year has progressed ‘as anticipated’ with decreased revenue but a ‘robust’ balance sheet.
The Elland, England-based landscaping products company said total revenue for 2023 was £671 million, down 7% from £719 million in 2022. This included an additional four months of trading from Marley Roofing Products.
Marshalls said that on a like-for-like basis, however, revenue ‘contracted’ by 13%. The reduction ‘reflects lower demand from house builders and continued subdued activity in private housing [repair, maintenance & improvements]’.
Marshalls Landscape Products revenue fell 18% to £321 million from £394 million, while Building Products revenue fell 12% to £170 million from £193 million. Marley’s revenue, meanwhile, rose to £180 million in 2023 from £132 million from May to December; this represents a 9% reduction like-for-like.
However, Marshalls said its balance sheet ‘remains robust’ with £173 million in net debt at December 31, down from £191 million one year prior.
Marshalls said management took decisive actions, such as closing factories and reducing shifts, to improve the firm’s agility and right-size by reducing costs and capacity. It expects these to deliver around £11 million in net annualised savings.
‘Importantly, 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 added.
Marshalls acknowledged that short-term market challenges remain, but ‘remains confident that the long-term market growth drivers...will underpin a material improvement in profitability when markets recover.’
Marshalls is furthermore ‘encouraged recently’ by improving inflation trends and interest rate expectations.
Marshalls shares traded 1.1% higher at 252.90 pence on Thursday morning in London.
Copyright 2024 Alliance News Ltd. All Rights Reserved.