16 October 2024
Marshalls
plc
('Marshalls' or 'the
Group')
Q3 Trading
Update
Marshalls, a leading manufacturer of
sustainable solutions for the built environment, provides the
following trading update for the nine months ended 30 September
2024.
Overview
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·
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Resilient performance in continued
weak end markets with YTD Group revenue of £476 million (2023: £528
million):
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o
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Group revenue during Q3 was three
per cent lower than the prior year: a material improvement over the
12 per cent like-for-like reduction in H1
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o
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Double-digit growth in Roofing
Products in Q3 driven by a very strong Viridian Solar
performance
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o
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Flat revenues in Building Products
in Q3 together with a lower rate of contraction in Landscape
Products during Q3 compared to H1
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·
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Pre-IFRS16 net debt reduced in Q3 to
£149 million driven by continued focus on cash
management
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Capital Markets Event scheduled for
19 November 2024, to set out the Group's medium-term growth
opportunities
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The Board expects that the full year
profit will be in-line with its previous expectations
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Divisional trading performance
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Like-for-like revenue growth
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HY June
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Q3
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YTD
September
|
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Landscape Products
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-19%
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-13%
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-17%
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Building Products
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-6%
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0%
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-4%
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Roofing Products
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-5%
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12%
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0%
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Group
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-12%
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-3%
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-9%
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Landscape Products' revenue in the
period was £209 million (2023: £257 million), which represents a
like-for-like reduction of 17 per cent compared to 2023. The
like-for-like rate of contraction slowed in the third quarter to 13
per cent from the 19 per cent reported at the half year,
principally driven by a moderation in the decline in new house
building and private housing RMI end markets. The Board continues
to focus on its transformation programme to strengthen the
leadership team and customer relationships and improve the
performance of the segment.
Building Products' revenue was £128
million (2023: £133 million), which represents a reduction of four
per cent over the prior year with Q3 being in-line with 2023. The
Q3 performance comprises growth in the drainage and bricks
businesses, which was offset by a contraction in revenues in the
mortars and aggregates businesses.
Roofing Products' revenue was £139
million (2023: £138 million), marginally ahead of the prior year.
In the third quarter, the segment delivered growth of 12 per cent
which comprised a modest increase in Marley, together with growth
of around 70 per cent in Viridian Solar. The increase in Viridian
Solar was driven by a combination of the continued ramp-up in
activity arising from Part L building regulations that are focused
on increasing energy efficiency, and weaker prior year comparatives
as new build housing volumes slowed in the second half of
2023.
Balance sheet and liquidity
The Group's balance sheet continues
to be robust, with pre-IFRS16 net debt of £149 million at the end
of September 2024 (September 2023: £190 million, June 2024: £156
million). Net debt is therefore £41 million lower than the
prior year, reflecting strong organic cash generation and a
continued focus on cash management. The Group repaid a
further £25 million of its term loan in early October 2024 to
optimise its financing costs and, following this payment, the
outstanding balance is £155 million. The Group's £160 million
revolving credit facility was undrawn at the end of the
period.
Strategy
The ongoing review of the Group's
strategy has identified a number of opportunities to deliver
relative outperformance over the medium term. These include an
increased focus on attractive sustainability-driven markets across
bricks and masonry, water management and energy transition
alongside the expected cyclical recovery in the core landscape and
roofing businesses, supported by the impact of the Government's
commitment to increase housebuilding significantly. More
information will be provided at the Capital Markets Event on 19
November 2024.
Outlook
In anticipation of a continued
improving demand environment for the Group's products, the Board
expects that profit for the full year will be in line with its
previous expectations and that pre-IFRS16 net debt will be modestly
better than its previous expectations.
Enquiries:
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Marshalls plc
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Matt Pullen, Chief
Executive
Justin Lockwood, Chief Financial
Officer
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+44 1422
314777
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Hudson Sandler (Financial PR)
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Mark Garraway
Nick Lyon
Harry Griffiths
India Laidlaw
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+44 20
7796 4133
marshalls@hudsonsandler.com
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Note to the Editor:
About Marshalls plc:
Established in the late 1880s,
Marshalls plc is a leading UK manufacturer of sustainable solutions
for the built environment. It operates through three trading
divisions: Landscape Products; Building Products; and Roofing
Products. Landscape Products is the UK's leading manufacturer
of superior natural stone and innovative concrete hard landscaping
products, supplying the construction, home improvement and
landscape markets. Building Products is a supplier of
concrete drainage products, concrete bricks, ready-to-use mortars
and aggregates. Roofing Products is a leader in the
manufacture and supply of pitched roofing systems, including clay
and concrete tiles, timber battens, roof integrated solar solutions
and roofing accessories.
The Group operates a national
network of manufacturing and distribution sites throughout the UK.
Marshalls is committed to quality in everything it does, including
the achievement of high environmental and ethical standards and
continual improvement in health and safety performance. Its
strategic goal is to become the UK's leading manufacturer of
products for the built environment.
Forward-Looking
Statements:
Any statements in this release, to
the extent that they are forward-looking, are subject to risk
factors associated with, amongst other things, the economic and
business circumstances occurring from time to time in the markets
in which Marshalls operates. It is believed that the expectations
reflected in these statements are reasonable, but they may be
affected by a wide range of variables, which could cause actual
results to differ materially from those currently
anticipated. More information about the factors that may
affect Marshalls' performance is contained in the Annual Report to
shareholders for the year ended 31 December 2023.
