Revenues drop at building supplies group amidst tough markets
Building supplies firm, Marshalls, says its financial performance has benefited from increased efficiency and cost reductions, along with strong performances in its Roofing and Building Products operations.
The Elland-headquartered business, which has today published its full year results for the 12 months ended 31 December 2024, adds it is expecting a market recovery later this year.
It has recorded revenues of £619.2m (2023: £671.2m), reported pre-tax profits of £39.4m (£22.2m) and adjusted pre-tax profits of £52.2m (2023: £53.3m).
Matt Pullen, chief executive, said: “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.
“The positive performances of our Roofing and Building Products, which contributed more than 80 per cent of our profit in 2024, highlight the strength of a diverse portfolio.
“The focused improvement plans in Landscaping that were implemented last year are gaining traction and will deliver a progressive and significant improvement in profitability. Additionally, our disciplined focus on working capital management has strengthened our balance sheet through a £39m reduction in pre-IFRS16 net debt.
“We are encouraged by the Government’s commitment to boosting new house building and investing in national infrastructure, which together with our ‘Transform & Grow’ strategy and the positive impact of operational leverage, will benefit all our businesses in the medium term.”
The company notes its Marshalls Landscaping operation has underperformed, adding that it has taken steps to address this and is confident its performance will improve.
The firm explains its “Transform & Grow” strategy will further diversify its sector exposure across new build housing, housing RMI (repairs, maintenance and investment), infrastructure, commercial projects.
Marshalls says this sector diversification offers protection against market fluctuations, and will enable the group to capitalise on opportunities arising from demand growth, investment and regulatory tailwinds.
