Building products manufacturer Marshalls saw group revenue fall by 13% for the first half of 2023, a trading update today (July 31) revealed. As a result, the company is cutting 250 jobs and closing its factory in Carluke, Lanarkshire. The job losses are in addition to the 150 redundancies announced at the end of last year.
The biggest falls in revenue were in the landscape products division, which has suffered from a slow-up in new housing output and a reduction in domestic refurbishment work.
Adjusted pre-tax profit is expected to be around £33m, down from £45m.
The group is blaming “persistent weakness” in its key sectors of new build housing and private housing RMI.
As well as the closure of the Carluke factory, Marshalls also announced a reduction in shifts and capacity in other facilities, and a restructuring of its commercial team.
The company said: “These actions are expected to deliver annualised savings of approximately £9m, with around 40% of this benefit being realised in 2023. The board has reduced its capital expenditure plans without impacting critical projects, is executing a programme of surplus land disposals, and has continued to focus on efficient working capital management in order to reduce the group’s net debt.”