(Alliance News) - Marshalls PLC on Wednesday said its revenue has declined so far in 2024, but it predicted profit will be in line with expectations as it eyes a "modest recovery" in the second half.
The landscaping products maker said revenue in the four months to April 30 was down 10% like-for-like to GBP199 million from GBP227 million, an outcome that reflects "weak demand" in its key end markets.
Landscape Products revenue was down 15% on-year on a like-for-like basis at GBP89 million. The Landscape Products segment was hurt by "a weaker performance in new build housing and discretionary private housing repair, maintenance and improvement" work.
Building Products revenue declined 3% like-for-like to GBP54 million. Roofing Products revenue fell 8% to GBP56 million.
Marshalls added: "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."
Marshalls said it has made moves to control costs amid the "subdued markets".
"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," it added.
In 2023, the firm achieved pretax profit of GBP22.2 million, down 40% from 2022, on revenue which declined 6.7% to GBP671.2 million.
The firm added that Simon Bourne has moved into the role of chief commercial officer, from his current chief operating officer position. Bourne will oversee the firm's commercial strategy. He will continue to serve on the board.
Shares in the company traded 2.1% higher at 314.05 pence each in London on Wednesday morning.
By Eric Cunha, Alliance News news editor
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Marshalls (MSLH)