Marshalls H1 profits rise even as revenues ease

(Sharecast News) - Building products manufacturer Marshalls said on Monday that adjusted profits had risen in the six months ended 30 June despite slightly lower year‑on‑year revenues, driven by improved execution and early benefits from its landscaping turnaround plan. Adjusted operating profits increased 8.1% to £30.7m, driven by a recovery in landscaping products as service levels and customer engagement improved, while adjusted earnings per share rose 14.4% to 7.6p, helped by lower finance costs and a reduced tax rate. Adjusted pre-tax profits grew 13.2% to £24.9m.

Marshalls said group revenues edged 0.5% lower to £317.8m, with a stronger landscaping performance partly offset by weaker profitability in building products and roofing products

Net financial expenses fell to £5.8m, reflecting lower borrowings, while pre‑IFRS 16 net debt fell to £136.8m, with leverage at 1.7x and operating cash conversion at 98%.

Marshalls also lifted its interim dividend by 13.6% to 2.5p.

The FTSE 250-listed firm stated a sharper operating focus was improving execution across the business, with attention centred on service quality, margins and cash. Landscaping products continued to move from "reset to delivery", remaining on track to achieve £11m of annualised cost savings by the end of FY26.

Building products delivered a mixed performance, with its mortars and screeds unit resilient, its bricks and masonry division prioritising service and costs in a soft housing market, and its water management wing building its infrastructure‑led pipeline. Roofing products also held up, with Marley gaining share and Viridian Solar broadening its offer.

Looking ahead, Marshalls expects no material market recovery in the second half but reiterated full‑year profit expectations, with its "Transform & Grow" strategy supporting medium‑term improvements in margin, cash and returns.

As of 0815 BST, Marshalls shares were down 1.98% at 177.80p.







Reporting by Iain Gilbert at Sharecast.com

See latest RNS at Investegate