15 May 2024
Marshalls
plc
('Marshalls' or
'Group')
AGM Trading
Update
Ahead of its Annual General Meeting
at 11.00am today, Marshalls, a leading manufacturer of sustainable
solutions for the built environment, provides the following trading
update for the four months to 30 April 2024.
Overview and outlook
In continuing subdued markets, the
Board maintained its proactive control of costs and successful
reduction of net debt. We have restructured the executive
team to prioritise our commercial focus and accelerate the
implementation of key strategic initiatives.
Group revenue during the period was
down by 10 per cent on a like-for-like basis at £199 million (2023:
£227 million), reflecting the expected continuation of weak demand
in the Group's key end markets of new build housing and private
housing RMI.
The Board continues to expect a
modest recovery in the second half of the year predicated on a
progressive improvement in the macro-economic environment.
Against this backdrop and given the decisive management actions
taken to reduce capacity and the cost base in 2023, the Board
remains confident that profit in 2024 will be in-line with its
previous expectations and at similar levels to 2023.
Divisional trading performance
Landscape Products revenue was down
by 15 per cent on a like-for-like basis at £89 million (2023: £110
million). A weaker performance in new build housing and
discretionary private housing RMI was moderated by a more modest
reduction in commercial & infrastructure revenues.
Building Products contracted by three
per cent to £54 million (2023: £55 million). Revenue in the
civils and drainage business increased year-on-year supported by
increased infrastructure work, and more recently by some
improvement in housing groundwork activity. Bricks and mortar
revenues were lower than 2023 due to weaker new build housing
activity in the period compared to a relatively strong performance
in the same period last year. Pleasingly, the Group further
increased its share of the UK brick market in the first quarter of
2024.
Roofing Products revenue was eight
per cent lower at £56 million (2023: £61 million). Within
this, Viridian Solar revenue was slightly higher than 2023 despite
the significant reduction in new build activity, which is driven by
the start of the expected increase in volumes arising from a change
in building regulations.
Balance sheet and liquidity
The Group's balance sheet continues
to be robust, with pre-IFRS16 net debt of £175 million at the end
of April, which is £45 million lower than the prior year reflecting
strong cash generation (April 2023: £220 million, December 2023:
£173 million). The £160 million revolving credit facility was
undrawn at the end of April providing significant liquidity for the
Group. The Board's ongoing priority is to reduce leverage
from free cash flow generated by the business.
Board role change
In support of our strategic
ambitions, Simon Bourne, previously the Group's Chief Operating
Officer, has moved into the role of Chief Commercial Officer,
responsible for the Group's commercial strategy and the financial
performance of the Group's business divisions. Simon will
continue in his role as a member of the Marshalls Board.
Enquiries:
Matt Pullen
Justin Lockwood
|
Chief Executive
Chief Financial Officer
|
Marshalls plc
|
+44 (0)1422 314777
|
Tim Rowntree
|
|
MHP
|
+44 (0)78 3462 3818
|
Charlie Barker
|
|
|
+44 (0)77 3646 4749
|
Note to the Editor:
About Marshalls plc:
Established in the late 1880s,
Marshalls plc is a leading UK manufacturer of sustainable solutions
for the built environment. It operates through three trading
divisions: Landscape Products; Building Products; and Roofing
Products. Landscape Products is the UK's leading manufacturer
of superior natural stone and innovative concrete hard landscaping
products, supplying the construction, home improvement and
landscape markets. Building Products is a supplier of
concrete drainage products, concrete bricks, ready-to-use mortars
and aggregates. Roofing Products is a leader in the
manufacture and supply of pitched roofing systems, including clay
and concrete tiles, timber battens, roof integrated solar solutions
and roofing accessories.
The Group operates a national network
of manufacturing and distribution sites throughout the UK.
Marshalls is committed to quality in everything it does, including
the achievement of high environmental and ethical standards and
continual improvement in health and safety performance. Its
strategic goal is to become the UK's leading manufacturer of
products for the built environment.
Forward-Looking
Statements:
Any statements in this release, to
the extent that they are forward-looking, are subject to risk
factors associated with, amongst other things, the economic and
business circumstances occurring from time to time in the markets
in which Marshalls operates. It is believed that the expectations
reflected in these statements are reasonable, but they may be
affected by a wide range of variables, which could cause actual
results to differ materially from those currently
anticipated. More information about the factors that may
affect Marshalls' performance is contained in the Annual Report to
shareholders for the year ended 31 December 2023.