Diversification delivers healthy results for building products group
Building products giant, Marshalls, has attributed a strong set of results for the half year ended 30 June 2022 to its diverse business model and its successful choice of acquisitions.
The Elland-based business, which completed its acquisition of Marley Group plc on 29 April 2022, has recorded revenue growth of 17% to £348.4m (H1 2021: £298.1m) and adjusted pre-tax profits of £44.6m (H1: £39.5m). Adjusted EBIDTA is up to £64.2m (H1 2021: £56.4m).
Martyn Coffey, chief executive, said: “Marshalls delivered a robust first half trading performance, demonstrating the strength of our business model and the benefits of greater diversification resulting from the transformational Marley deal completed in April 2022 and other acquisitions of recent years.
“Looking forward, the Board acknowledges the macro outlook is becoming less certain due to geopolitical events driving up inflation and adversely impacting consumer confidence.
“Notwithstanding this, the Board’s expectations for the Group as a whole remain in line with market expectations for the full year.
“Our strategy is underpinned by our strong market positions, established brands and focused investment plans to drive ongoing operational improvement. We remain confident this will continue to deliver profitable long‑term growth.”
Marshalls says its construction of a £24m dual block plant at St Ives, in Cambridgeshire, is progressing according to plan, with the first production line expected to be operational in quarter four 2022.
It notes the outlook for commercial construction demand in the second half of 2022 remains positive and that these end markets represent around 75% to 80% of its revenues.
In contrast, the softening demand for private housing repairs maintenance and improvements, which represents 20% to 25% of Group revenues, is expected to continue in the second half of the year.
Marshalls’ report adds: “The effects of wider economic and geopolitical uncertainty and volatility, including the effect of the conflict in Ukraine on global supply chains, are continually being assessed.
“In addition, the impact that increasing cost inflation and further increases in interest rates might have on consumer demand is a particular risk currently.”
