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(Sharecast News) - Marshalls said on Thursday that adjusted pre-tax profit for the full year is set to be in line with its expectations as it reported a drop in revenue amid subdued demand.
In an update for the year to the end of December 2023, the landscape products manufacturer said group revenue fell 7% on the year to £671m. On a like-for-like basis, revenue was down 13%. Marshalls pointed to weaker demand from house builders and continued subdued activity in the repair, maintenance and improvement market.
Revenue from the landscape products segment declined 18% to £321m. On a like-for-like basis, after adjusting for the disposal of Marshalls NV in April 2023, revenues were down 16%.
Meanwihle, the building products arm saw revenues fall 12% to £170m and Marley roofing products revenue was £180m, down 9% on a LFL basis.
During the year, Marshalls took actions "to improve agility and right-size the business through reducing capacity and costs". These included the closure or mothballing of factories, a reduction in shifts and capacity in other facilities, and a reorganisation of commercial and support functions.
These are expected to deliver net annualised savings of around £11m, which is £2m higher than previous estimates.
"Execution of the group's strategy is underpinned by our strong market positions, established brands and focused investment plans to drive ongoing operational improvement," Marshalls said. "Notwithstanding the anticipated short-term challenges, the board remains confident that the long-term market growth drivers and a focus on executing key strategic initiatives, will underpin a material improvement in profitability when markets recover."
