Building products group confident of long-term growth once markets improve
Elland-based building products business, Marshalls, achieved revenue growth of 22% in its full year results for the year ended 31 December 2022.
The revenues of £719.4m (2021: £589.3m) included eight months worth of contribution from Marshalls’ acquisition of Marley Group plc in April last year. On a like-for-like basis, group revenue growth was 1%.
Adjusted pre-tax profits were £90.4m, an increase of 23% on 2021. Profit before tax on a statutory basis was £37.2m (2021: £69.3m) including the impact of adjusting items of £53.2m.
Martyn Coffey, chief executive, said: “Marshalls reported a record financial performance in 2022 against challenging market conditions.
“This performance demonstrates the benefit of the group’s deliberate diversification strategy, illustrated by the acquisition of Marley in 2022 and other acquisitions in recent years that now form the core of our Building Products segment.
“We took decisive action to reduce our capacity and cost base in 2022 in response to a contraction of demand in our Landscape Products business, and we will continue to focus on maintaining flexibility to respond to evolving market conditions and executing self-help initiatives as required.
“Notwithstanding short-term challenges, the Board remains confident the group is well placed to deliver profitable long‑term growth when market conditions improve and continues to focus on its key strategic initiatives.”
Marshalls says its conservative capital structure was maintained and it also highlights ongoing investment in leading edge technology to enhance capabilities and efficiency.
Reduced volumes and profitability in the company’s Landscape Products arm, led to the group cutting capacity and the annual cost base by £10m.
In the short term, while the macro-economic climate is expected to remain difficult and assuming a progressive improvement in Marshalls’ end markets during the year, the business’s board says it remains confident of delivering a result that is in-line with expectations.