Trading Statement

Marshalls PLC

15 May 2024

 

15 May 2024

Marshalls plc

('Marshalls' or 'Group')

AGM Trading Update

Ahead of its Annual General Meeting at 11.00am today, Marshalls, a leading manufacturer of sustainable solutions for the built environment, provides the following trading update for the four months to 30 April 2024.

Overview and outlook

In continuing subdued markets, the Board maintained its proactive control of costs and successful reduction of net debt.  We have restructured the executive team to prioritise our commercial focus and accelerate the implementation of key strategic initiatives.

Group revenue during the period was down by 10 per cent on a like-for-like basis at £199 million (2023: £227 million), reflecting the expected continuation of weak demand in the Group's key end markets of new build housing and private housing RMI.

The Board continues to expect a modest recovery in the second half of the year predicated on a progressive improvement in the macro-economic environment.  Against this backdrop and given the decisive management actions taken to reduce capacity and the cost base in 2023, the Board remains confident that profit in 2024 will be in-line with its previous expectations and at similar levels to 2023.

Divisional trading performance

Landscape Products revenue was down by 15 per cent on a like-for-like basis at £89 million (2023: £110 million).  A weaker performance in new build housing and discretionary private housing RMI was moderated by a more modest reduction in commercial & infrastructure revenues.

Building Products contracted by three per cent to £54 million (2023: £55 million).  Revenue in the civils and drainage business increased year-on-year supported by increased infrastructure work, and more recently by some improvement in housing groundwork activity.  Bricks and mortar revenues were lower than 2023 due to weaker new build housing activity in the period compared to a relatively strong performance in the same period last year.  Pleasingly, the Group further increased its share of the UK brick market in the first quarter of 2024.

Roofing Products revenue was eight per cent lower at £56 million (2023: £61 million).  Within this, Viridian Solar revenue was slightly higher than 2023 despite the significant reduction in new build activity, which is driven by the start of the expected increase in volumes arising from a change in building regulations.

Balance sheet and liquidity

The Group's balance sheet continues to be robust, with pre-IFRS16 net debt of £175 million at the end of April, which is £45 million lower than the prior year reflecting strong cash generation (April 2023: £220 million, December 2023: £173 million).  The £160 million revolving credit facility was undrawn at the end of April providing significant liquidity for the Group.  The Board's ongoing priority is to reduce leverage from free cash flow generated by the business.

Board role change

In support of our strategic ambitions, Simon Bourne, previously the Group's Chief Operating Officer, has moved into the role of Chief Commercial Officer, responsible for the Group's commercial strategy and the financial performance of the Group's business divisions.  Simon will continue in his role as a member of the Marshalls Board.

Enquiries:

Matt Pullen Justin Lockwood	Chief Executive Chief Financial Officer	Marshalls plc	[phone]
Tim Rowntree		MHP	[phone]
Charlie Barker			[phone]

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.

 

END