Shares of Marshalls plc, the Elland, West Yorkshire-based stone and landscaping firm, fell as much as 8% after it reported profit before tax fell 40% to £22.2 million in the year to December 31, 2023, and that total dividend was cut 47% to 8.3p.

Marshalls ‘ revenue fell 7% to £671.2 million and adjusted profit before tax declined 41% to £53.3 million.

The firm also said it believes that revenues in 2024 will be lower than previously expected.

In its outlook, Marshalls said: “Revenue in the first two months of the year was lower than 2023 and reflects the continued weakness seen in the second half of last year …

“In line with recent sentiment of UK economic and industry forecasts, the board expects activity levels to remain subdued in the first half of the year followed by a modest recovery in the second half as the macro-economic environment progressively improves.

“The start of this recovery is now expected to be slower and more modest than previously assumed. Therefore the board believes that revenues in 2024 will be lower than previously expected and that profit will now be at a similar level to 2023 …”

On March 1, 2024, Matt Pullen was appointed chief executive of Marshalls, succeeding Martyn Coffey.

Pullen said: “I am delighted to be appointed as chief executive of Marshalls.

“During 2023, the business was necessarily focused on controlling and improving the efficiency and agility of its cost base, leveraging its strength in operations, as well as rigorous and strong management of cashflow.

“All of the actions taken demonstrate the business is well managed and agile. I would like to thank all my colleagues for their hard work and commitment throughout last year.

“I have been with the group since early January and these first two months have reinforced my view of both the strengths of the business and the significant opportunity to deliver profitable growth and create shareholder value. 

“Over the coming months our focus will be on evolving the existing strategy, with a focus on the medium and longer-term market opportunities related to climate mitigation and adaptation and the structural drivers that will fuel demand for the group’s products and solutions.

“In the short-term markets are expected to remain challenging with continued weakness in the first half of the year followed by a progressive recovery in the second half as the macro-economic environment improves.

“This recovery is however expected to be slower and more modest than previously anticipated.

“The board remains confident that actions taken to improve efficiency and flexibility, together with a more diversified and resilient portfolio have strengthened the group.

“With clear long-term structural growth drivers and attractive market growth opportunities, the group is well positioned for relative outperformance in the medium term, and this will underpin a material improvement in profitability as end markets recover.”