UK's Marshalls H1 revenue falls, keeps FY profitability view
UK's Marshalls H1 revenue falls, keeps FY profitability view
Overview
UK building products maker's H1 revenue dipped 0.5% amid subdued market conditions
Adjusted basic EPS for H1 rose 14.4%, supported by cost savings and lower finance costs
Company maintains FY26 profitability outlook despite no expected near-term market recovery
Outlook
Company expects no material market recovery in H2 2026
FY26 profitability expectations unchanged
Company remains on track to deliver £11 mln annualised cost savings in Landscaping Products by end-FY26
Result Drivers
COST SAVINGS - Profitability in Landscaping Products improved due to cost savings from the performance improvement plan and reduced overheads
PRICING DISCIPLINE - Revenue performance reflected the benefit of pricing actions offset by lower volumes, despite positive market share momentum
SEGMENT MIXED PERFORMANCE - Building Products and Roofing Products saw lower profitability due to weak new build housing demand and competitive conditions
Company press release: ID:nRSJ8450Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 317.80 mln |
|
H1 Adjusted EBITDA |
| GBP 44 mln |
|
H1 Adjusted Operating Profit |
| GBP 30.70 mln |
|
H1 Adjusted Pretax Profit |
| GBP 24.90 mln |
|
H1 Operating Profit |
| GBP 25.50 mln |
|
H1 Pretax Profit |
| GBP 19.70 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction materials peer group is "buy"
Wall Street's median 12-month price target for Marshalls PLC is GBp248.00, about 36.7% above its August 7 closing price of GBp181.40
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)