21 January 2025
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Full Year Trading Update and
Notice of Results
Marshalls, a leading manufacturer of
sustainable solutions for the built environment, provides the
following trading update for the 12-month period ended 31 December
2024.
Overview
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Resilient performance in challenging
market conditions:
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Revenue of approximately £619
million (2023: £671 million)
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Further strong reduction in net debt
to £134 million (2023: £173 million)
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The Board expects adjusted profit
before tax for 2024 to be within the range of market
expectations1
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'Transform & Grow' strategy
launched and being rolled out at pace
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The Board believes that
profitability in 2025 will be ahead of FY2024 with the rate of
growth subject to the pace of market recovery and the benefits of
the near-term actions being realised
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Trading performance
The Group delivered full-year
revenue of approximately £619 million (2023: £671 million), which
is a year-on-year reduction of eight per cent.
Landscaping revenue was £268 million
(2023: £321 million), which represents a reduction of 17 per cent.
The segment delivered a progressive improvement in performance
during H2 from the 23 per cent decline at the end of H1 to nine per
cent in Q4. The full year performance reflects lower demand from
house builders and continued subdued activity in private housing
RMI. The Board remains focused on the near-term actions to improve
the performance of the business, which were shared at the Capital
Markets Event in November 2024.
Building Products revenue was £165
million (2023: £170 million), a modest reduction of three per cent,
given weak demand in new build housing. The performance in Q4 and
across H2 as a whole was broadly flat with an improved performance
from bricks and mortars, offset by a weaker performance from the
aggregates business.
Roofing revenue increased by four
per cent during 2024 to £186 million (2023: £180 million).
Revenue growth was strong in Q4, at 15 per cent, which comprised
growth of around 75 per cent from Viridian Solar, capitalising on
the Part L building regulations, and a return to growth in
Marley.
Balance sheet and liquidity
The Group continues to strengthen
its balance sheet ending the year with pre-IFRS16 net debt of £134
million (December 2023: £173 million). This reflected very strong
cash conversion, and other one-off factors which amounted to
approximately £9 million that are expected to reverse during the
first quarter of 2025. The Group's revolving credit facility of
£160 million was undrawn at the year-end, which, together with the
reduced term loan, provides the Group with significant liquidity to
fund its strategic and operational plans.
Strategy
Marshalls launched its 'Transform
& Grow' strategy at its Capital Markets Event on 19 November
2024. The Group is well positioned to benefit from attractive
sustainability-driven markets across bricks and masonry, water
management and energy transition alongside the expected cyclical
recovery in the core landscaping and roofing businesses. The
Group's portfolio of businesses have enviable leadership positions
within their markets, strong differentiated brand propositions and
significant headroom for growth. Marshalls will prioritise
customers that value its unique set of capabilities: leading brand
portfolio; best in class technical support; and carbon leadership.
The Group will continue to invest in these areas and in its people,
business-wide enterprise excellence and leadership in ESG standards
and governance.
Outlook
The Group's business units are well
positioned to capitalise on the market recovery, which is expected
to build progressively through the year. Continued market
uncertainty and a £3 million increase in costs from higher National
Insurance contributions prompt a cautious outlook and consequently
the Group will maintain its disciplined approach to cost
management. The Board believes that profitability in 2025
will be ahead of FY2024 with the rate of growth subject to the pace
of market recovery and the benefits of the near-term actions being
realised.
The Board also remains confident
that the long-term market growth drivers and a focus on executing
the 'Transform & Grow' strategy, will underpin a material
improvement in profitability in the medium-term.
Notice of Results
The Group will announce its results
for the year ended 31 December 2024 on 17 March 2025.
1Company compiled market consensus expectations for adjusted
profit before tax in 2024 is £52.9 million, with a range of £52.0
million to £53.7 million.
Matt Pullen, Chief Executive of Marshalls plc,
said:
"We are pleased to report a resilient performance and further
reduction in net debt. Despite subdued market activity throughout
the year, our results underline the strength of our diversified
portfolio of businesses.
Looking ahead to 2025, our focus will be on the execution of
our new Transform & Grow strategy, capitalising on identified
growth opportunities, continuing to drive performance in our core
business, and maintaining a disciplined approach to investments and
cost management."
Enquiries:
Marshalls plc
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Matt Pullen, Chief
Executive
Justin Lockwood, Chief Financial
Officer
Simon Bourne, Chief Commercial
Officer
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+44 1422
314777
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Hudson Sandler (Financial PR)
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Mark Garraway
Harry Griffiths
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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: Landscaping; Roofing; and Building. At a Group,
divisional and brand level, Marshalls' strategy centres around its
customers who value its unique set of capabilities, namely leading
brands, best in class technical and design support and carbon
leadership. This is underpinned by business wide enterprise
excellence, leadership in ESG governance and standards and its
people, organisation, and culture.
The Group operates a national
network of manufacturing and distribution sites. 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
sustainable solutions and 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.