Shares of Elland, West Yorkshire-based stone and landscaping products firm Marshalls plc fell about 6% on Tuesday after it said revenue for the six months ended June 30, 2020, fell 25% to £210.5 million and that it is not proposing an interim dividend.
Marshalls said it swung to a statutory loss of £16 million from a £37.1 million profit at the same stage of last year “after operational restructuring costs and asset impairments …”
Marshalls also said that “as a consequence of COVID-19” it is not proposing an interim dividend for the current year.
It said the resumption of future dividends will be reviewed at the full year.
In his outlook, Marshalls CEO Martin Coffey said: “Although business confidence and market demand remain uncertain, recent trading has been better than expected and continues to improve.
“Our restructuring programme is now complete and the new bank facilities have further strengthened the group.
“The decisive actions that have been taken have improved the efficiency and flexibility of our plants and will help Marshalls to emerge from the current market difficulties in a stronger competitive position.
“Marshalls holds a leading position and enjoys a strong brand in its core markets.
“We will continue to protect the long term sustainability of the business and will remain focused on developing future growth opportunities and delivering the strategic objectives in our 5 year Strategy.
“Following the onset of COVID-19, the group withdrew financial guidance for the year on 27 March.
“Following the strong recovery in sales volumes seen in the business in recent weeks, Marshalls is reinstating guidance with this announcement, albeit on a qualified basis given the continued uncertainty regarding any future impacts from COVID-19.
“Assuming the current demand recovery continues, the group anticipates delivering an operating profit for the full year consistent with current consensus.”