Shares of Marshalls plc, the Elland, West Yorkshire-based stone and landscaping firm, fell as much as 6% after it published a trading update for the 12-month period ended December 31, 2024, showing revenue fell 8% to £619 million.
Marshalls said it expects adjusted profit before tax for 2024 to be within the range of market expectations. Company compiled market consensus expectations for adjusted profit before tax in 2024 is £52.9 million, with a range of £52 million to £53.7 million.
“The board believes that profitability in 2025 will be ahead of FY2024 with the rate of growth subject to the pace of market recovery and the benefits of the near-term actions being realised …” said the firm.
“Landscaping revenue was £268 million (2023: £321 million), which represents a reduction of 17 per cent. The segment delivered a progressive improvement in performance during H2 from the 23 per cent decline at the end of H1 to nine per cent in Q4.
“The full year performance reflects lower demand from house builders and continued subdued activity in private housing RMI. The board remains focused on the near-term actions to improve the performance of the business, which were shared at the Capital Markets Event in November 2024.
“Building Products revenue was £165 million (2023: £170 million), a modest reduction of three per cent, given weak demand in new build housing. The performance in Q4 and across H2 as a whole was broadly flat with an improved performance from bricks and mortars, offset by a weaker performance from the aggregates business.
“Roofing revenue increased by four per cent during 2024 to £186 million (2023: £180 million). Revenue growth was strong in Q4, at 15 per cent, which comprised growth of around 75 per cent from Viridian Solar, capitalising on the Part L building regulations, and a return to growth in Marley.
In its outlook, Marshalls said: “Continued market uncertainty and a £3 million increase in costs from higher National Insurance contributions prompt a cautious outlook and consequently the group will maintain its disciplined approach to cost management.
“The board believes that profitability in 2025 will be ahead of FY2024 with the rate of growth subject to the pace of market recovery and the benefits of the near-term actions being realised.
“The board also remains confident that the long-term market growth drivers and a focus on executing the ‘Transform & Grow’ strategy, will underpin a material improvement in profitability in the medium-term.”
Marshalls CEO Matt Pullen said: “We are pleased to report a resilient performance and further reduction in net debt. Despite subdued market activity throughout the year, our results underline the strength of our diversified portfolio of businesses.
“Looking ahead to 2025, our focus will be on the execution of our new Transform & Grow strategy, capitalising on identified growth opportunities, continuing to drive performance in our core business, and maintaining a disciplined approach to investments and cost management.”