Marshalls’ robust performance pushes profits

Building products manufacturer Marshalls posted vastly improved half-year results for the six months to June 30^th, with pre-tax profits jumping 70% to £19.7m, on revenue that was more-or-less unchanged, at £317.8m (£319.5 for the same period a year ago).

The group stated that improved service and customer engagement in is core Landscaping division supported market share momentum and the beginning of a profit recovery. Building Products delivered a more mixed performance, with Mortars & Screeds remaining resilient while Bricks & Masonry focused on service levels and costs in a difficult new housing market. Water Management continued to make progress in building its infrastructure-led pipeline.  Roofing Products also remained resilient, with Marley Roofing gaining market share despite a competitive concrete roof tile market and Viridian Solar continuing to broaden its offer.

With no material market recovery assumed in the second half, the group intends to keep tight control of execution, cost, cash and capital.

 Simon Bourne, Chief Executive Officer, said: “We have delivered a resilient first half performance, despite subdued end markets, with adjusted profit growth delivered in line with expectations. This reflects our reinvigorated focus on sharper execution, continued financial discipline and the benefits of actions taken through FY25 to create a leaner and more focused operating platform.

“Landscaping Products demonstrates the clearest evidence of this progress, with our performance improvement plan delivering improved profitability and the business remaining on track to deliver the previously announced £11 million of annualised cost savings by the end of FY26. Roofing Products continued to provide a strong contribution, driven by Viridian Solar and disciplined trading in Marley Roofing. Building Products was mixed, with Mortars & Screeds resilient and Water Management positioned for infrastructure-led growth, but weak new build housing demand weighed on both Bricks & Masonry and Water Management performance in the first half.

“We remain focused on what we can control: service, cost, cash, working capital and disciplined capital allocation. We are not factoring a material market recovery into our second half assumptions, and the operational progress delivered to date, together with the strength of our diversified portfolio, supports the Board’s confidence in the Group’s outlook for the full year and our medium-term growth potential.”