REG - Marshalls PLC - Full Year Trading Update and Notice of Results

MarshallsAnnouncement

21/01/2025 07:00

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RNS Number : 0095U  Marshalls PLC  21 January 2025

21 January 2025

 

 

 

Full Year Trading Update and Notice of Results

 

Marshalls, a leading manufacturer of sustainable solutions for the built
environment, provides the following trading update for the 12-month period
ended 31 December 2024.

 

Overview

 ·             Resilient performance in challenging market conditions:
               o                                         Revenue of approximately £619 million (2023: £671 million)
               o                                         Further strong reduction in net debt to £134 million (2023: £173 million)
               o                                         The Board expects adjusted profit before tax for 2024 to be within the range
                                                         of market expectations(1)
 ·             'Transform & Grow' strategy launched and being rolled out at pace
 ·             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

 

Trading performance

The Group delivered full-year revenue of approximately £619 million (2023:
£671 million), which is a year-on-year reduction of eight per cent.

 

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.

 

Balance sheet and liquidity

The Group continues to strengthen its balance sheet ending the year with
pre-IFRS16 net debt of £134 million (December 2023: £173 million). This
reflected very strong cash conversion, and other one-off factors which
amounted to approximately £9 million that are expected to reverse during the
first quarter of 2025. The Group's revolving credit facility of £160 million
was undrawn at the year-end, which, together with the reduced term loan,
provides the Group with significant liquidity to fund its strategic and
operational plans.

 

Strategy

Marshalls launched its 'Transform & Grow' strategy at its Capital Markets
Event on 19 November 2024.  The Group is well positioned to benefit from
attractive sustainability-driven markets across bricks and masonry, water
management and energy transition alongside the expected cyclical recovery in
the core landscaping and roofing businesses. The Group's portfolio of
businesses have enviable leadership positions within their markets, strong
differentiated brand propositions and significant headroom for growth.
Marshalls will prioritise customers that value its unique set of capabilities:
leading brand portfolio; best in class technical support; and carbon
leadership. The Group will continue to invest in these areas and in its
people, business-wide enterprise excellence and leadership in ESG standards
and governance.

 

Outlook

The Group's business units are well positioned to capitalise on the market
recovery, which is expected to build progressively through the year.
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.

 

Notice of Results

The Group will announce its results for the year ended 31 December 2024 on 17
March 2025.

 

(1)Company compiled market consensus expectations for adjusted profit before
tax in 2024 is £52.9 million, with a range of £52.0 million to £53.7
million.

 

Matt Pullen, Chief Executive of Marshalls plc, 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."

 

Enquiries:

 

 Marshalls plc
 Matt Pullen, Chief Executive               +44 1422 314777

 Justin Lockwood, Chief Financial Officer

 Simon Bourne, Chief Commercial Officer

 Hudson Sandler (Financial PR)
 Mark Garraway                              +44 20 7796 4133

 Harry Griffiths                            marshalls@hudsonsandler.com (mailto:marshalls@hudsonsandler.com)

 

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: Landscaping; Roofing; and Building. At a Group, divisional
and brand level, Marshalls' strategy centres around its customers who value
its unique set of capabilities, namely leading brands, best in class technical
and design support and carbon leadership. This is underpinned by business wide
enterprise excellence, leadership in ESG governance and standards and its
people, organisation, and culture.

 

The Group operates a national network of manufacturing and distribution sites.
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 sustainable solutions and 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.

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