Marshalls – Half Year Results

Half year results for the six months ended 30 June 2025

 ‘Transform & Grow’ strategy delivers a return to Group revenue growth in subdued markets

Marshalls plc, a leading manufacturer of sustainable solutions for the built environment, announces its results for the half year ended 30 June 2025.

£’M	H1 2025	H1 2024	Change
Revenue	319.5	306.7	4%
Adjusted results (Notes 1 and 2 below)
Adjusted EBITDA	42.9	50.6	(15%)
Adjusted operating profit	28.4	34.0	(16%)
Adjusted profit before tax	22.0	26.6	(17%)
Adjusted basic EPS – pence	6.6	7.9	(16%)
Adjusted annualised ROCE (%)	7.3	7.6	(0.3ppts)
Interim dividend – pence	2.2	2.6	(15%)
Pre-IFRS 16 net debt	151.6	155.8	3%
Reported results
Operating profit	18.1	28.9	(37%)
Profit before tax	11.7	21.5	(46%)
Basic EPS – pence	3.5	6.4	(45%)

Strategic and operational highlights

• Group returned to revenue growth with tangible early progress in the execution of the ‘Transform & Grow’ strategy

• Landscaping Products improvement plan delivered higher volumes and market share gains.  However, end markets remain challenging with subdued demand exerting pressure on prices, and a less profitable product mix adversely impacted profitability

• Acceleration of manufacturing footprint optimisation and overhead reduction in Landscaping Products expected to deliver annualised cost savings of £9 million by 2026

• Strong growth in Roofing Products was led by Viridian Solar and supported by a robust performance in Marley Roofing reinforcing its market-leading position

• Good performances in Water Management and Mortars drove profitable revenue growth in Building Products

Financial highlights

• Group revenue increased by four per cent driven by growth in both Building and Roofing Products, partially offset by modest contraction in Landscaping Products

• Group adjusted operating profit of £28.4 million reflects improved profitability in Building and Roofing Products offset by reduced profitability in Landscaping Products, impacted by targeted investment in pricing, a less profitable product mix and manufacturing inefficiencies

• Adjusted operating cashflow conversion was strong at 94 per cent on an annualised basis reflecting continuing disciplined working capital management

• Robust balance sheet with a year-on-year net debt reduction of £4.2 million and period end leverage of 1.8 times adjusted annualised EBITDA (H1 2024: 1.8 times)

• Interim dividend of 2.2 pence per share in line with dividend policy

Outlook

• The Board is taking decisive action to accelerate the optimisation of the national manufacturing network and reduce costs whilst continuing to deliver on all elements of the Landscaping Products performance improvement plan

• Mindful of continuing uncertainty in the macro-economic environment, the Board currently sees no improvement in market activity levels through the remainder of 2025, and expects the full-year outturn to be consistent with its revised guidance¹ issued on 25 July 2025

• Looking further ahead, the Board is encouraged by the Government’s commitment to new housing and infrastructure investment and expects the ‘Transform & Grow’ strategy to position the Group well for sustainable growth across all our reporting segments in the medium term

¹ Company guidance is for adjusted profit before tax for 2025 to be in the range of £42 million and £46 million.

Matt Pullen, Chief Executive, commented:

“The Group returned to revenue growth of four per cent in the first half of the year despite a subdued market. This performance reflects the benefits of our diversified portfolio, with Building and Roofing Products delivering good revenue and operating profit growth, and Landscaping Products reporting solid volume growth during the period although at lower profitability.

The Landscaping Products improvement plan is firmly underway, and we have made solid, early progress with operational improvements.  Whilst profit was below expectations, we have strengthened customer relationships and seen volume growth in the first half. We are accelerating action to reduce costs and optimise our national manufacturing network, which is expected to improve Landscaping Products profitability materially in 2026 and deliver the turnaround.

We are also delivering our growth strategies in Roofing and Building Products, building on our successful M&A strategy, by leveraging these growth engines to build a stronger and more diversified Group.  In Roofing Products, Viridian Solar continues to benefit from its market-leading roof-integrated solar proposition and the regulatory tailwinds driving energy efficiency in new homes and Marley Roofing also continued to deliver revenue growth, reinforcing its leadership position. In Building Products, we have secured new work in Water Management and are developing operational capability as we reposition the business to capture growth opportunities in the infrastructure and wastewater market ahead of the AMP8 investment cycle. While revenue in Bricks and Masonry contracted, our disciplined approach to pricing has prioritised margins in a highly competitive environment. 

Looking ahead, while the macroeconomic outlook remains uncertain and markets are likely to stay subdued in the near term, we are encouraged by the Government’s commitment to new housing and infrastructure investment which, together with our ‘Transform & Grow’ strategy, positions us well for sustainable growth across all our businesses in the medium term.”

Analyst presentation

There will be a live presentation today at 10:00am at the offices of Peel Hunt for analysts and investors, which will also be webcast live. The presentation will be available for analysts and investors who are unable to view the webcast live and can be accessed on Marshalls’ website at www.marshalls.co.uk.

Users can register to access the webcast using the following link: https://brrmedia.news/MSLH_HY25

Notes:

1. The results for the period ended 30 June 2025 have been disclosed after adding back adjusting items.
2. This Half Year Financial Report includes alternative performance measures (‘APMs’), which are not defined or specified under the requirements of International Financial Reporting Standards. The Board believes that these APMs provide stakeholders with important additional information on the Group.