12th Aug 2024 08:41
(Alliance News) - Marshalls PLC on Monday reported weaker half-year revenue performance, though this was more than offset by cost cutting.
Marshalls shares were down 3.8% to 327.00 pence early Monday in London, the worst performer in the FTSE 250 index, which was up 0.3%.
The Yorkshire, England-based landscaping products maker said pretax profit rose 29% to GBP21.5 million in the first half that ended June 30 from GBP16.7 million the previous year.
Revenue fell by 13% to GBP306.7 million from GBP354.1 million, but net operating costs were cut by 15% to GBP277.8 million from GBP327.3 million.
Marshalls net financial expenses were down 27% to GBP7.4 million from GBP10.1 million, as net debt was cut 16% to GBP155.8 million from GBP184.6 million.
The interim dividend was maintained at 2.6 pence per share.
Chief Executive Matt Pullen said: "The group has delivered a resilient performance in weak end markets. The result in the first half is encouraging and demonstrates that the strategy of diversification, building on the group's historic core Landscape Products business, through the acquisition and improvement of less cyclical businesses in recent years, has resulted in a more balanced group."
The company's key end markets of new build housing and private housing repairs, maintenance and improvements were weak in the first half compared to last year, Marshalls said.
Revenue fell across all segments, with Landscape Products declining 21% to GBP137.0 million, Building Products declining 6.2% to GBP81.8 million, and Roofing Products declining 5.3% to GBP87.9 million.
"The medium-term outlook for the UK construction industry is positive, and we anticipate a progressive recovery in 2025 that is expected to accelerate in 2026 through 2029. This is further supported by the new [UK] government and its stated mission to get Britain building again, with a commitment to build 1.5 million new dwellings in this parliament.
"We are confident that this more positive macro-economic backdrop will drive future growth for all our businesses," Marshalls said.
By Elijah Dale, Alliance News reporter
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