17th Mar 2025 09:39
(Alliance News) - Marshalls PLC on Monday reported lower revenue and cut its dividend, though cost reductions limited the impact on profitability.
The Yorkshire, England-based landscaping products maker said pretax profit increased 77% to GBP39.4 million in 2024 from GBP22.2 million in 2023. Adjusted pretax profit fell 2.1% to GBP52.2 million from GBP53.3 million.
Statutory pretax profit was impacted by GBP11.3 million of restructuring costs and GBP7.0 million property, plant and equipment impairments in 2023, which the firm did not register in 2024.
Revenue was down 7.7% to GBP619.2 million from GBP671.2 million. It said conditions in two of its primary end markets - new housing and housing repair, maintenance and improvement - continued to be challenging during the year.
It said efficiency gains and cost reductions helped to restrict the reduction in pretax profit.
Net operating costs were down 10% to GBP565.3 million in 2024 from GBP630.2 million in 2023.
Marshalls cut its final dividend by 5.3% to 5.4 pence per share, compared to 5.7p in 2023. The total dividend for 2024 was 8.0p, down 3.6% from 8.3p.
Looking ahead, Marshalls said it expects a market recovery later in 2024, which should "strengthen progressively", due to confidence in the UK government's plan to increase new house building and infrastructure investment.
"The group is well positioned to respond swiftly to improving activity levels as key end markets recover and the board remains confident about delivering a material increase in profitability and returns over the medium-term," Marshalls said.
Chief Executive Matt Pullen said: "I am pleased to report our results for what has been an important year for Marshalls, where the group has shown resilience in challenging markets by restricting the reduction in profit before tax to two per cent despite an eight per cent contraction in revenue."
Shares in Marshalls were down 1.4% to 240.00 pence in London on Monday morning.
By Michael Hennessey, Alliance News reporter
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