(Alliance News) - Marshalls PLC said trading in its latest year has progressed "as anticipated" with decreased revenue but a "robust" balance sheet.
The Elland, England-based landscaping products company said total revenue for 2023 was GBP671 million, down 7% from GBP719 million in 2022. This included an additional four months of trading from Marley Roofing Products.
Marshalls said that on a like-for-like basis, however, revenue "contracted" by 13%. The reduction "reflects lower demand from house builders and continued subdued activity in private housing [repair, maintenance & improvements]".
Marshalls Landscape Products revenue fell 18% to GBP321 million from GBP394 million, while Building Products revenue fell 12% to GBP170 million from GBP193 million. Marley's revenue, meanwhile, rose to GBP180 million in 2023 from GBP132 million from May to December; this represents a 9% reduction like-for-like.
However, Marshalls said its balance sheet "remains robust" with GBP173 million in net debt at December 31, down from GBP191 million one year prior.
Marshalls said management took decisive actions, such as closing factories and reducing shifts, to improve the firm's agility and right-size by reducing costs and capacity. It expects these to deliver around GBP11 million in net annualised savings.
"Importantly, management balanced the need to reduce capacity and the cost base in the short-term while retaining the flexibility to increase production when demand recovers," Marshalls added.
Marshalls acknowledged that short-term market challenges remain, but "remains confident that the long-term market growth drivers...will underpin a material improvement in profitability when markets recover."
Marshalls is furthermore "encouraged recently" by improving inflation trends and interest rate expectations.
Marshalls shares traded 1.1% higher at 252.90 pence on Thursday morning in London.
By Emma Curzon, Alliance News reporter
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Marshalls (MSLH)