UK's Marshalls reports higher profit on cost cuts, says market recovery unlikely in 2026
UK's Marshalls reports higher profit on cost cuts, says market recovery unlikely in 2026 Aug 10 (Reuters) - British landscaping and roofing products supplier Marshalls MSLH.L reported a 13.2% rise in first-half adjusted pretax profit, helped by tight cost controls, but said it does not expect any material market recovery this year.
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As Britain grapples with contracting residential and commercial construction due to rising inflation and a surge in raw material prices, Marshalls has been exiting unprofitable operations and right-sizing manufacturing capacity to shore up profits.
"We have also responded to cost inflation in a disciplined way, using targeted commercial actions, close customer engagement and cost control against a backdrop of external volatility," Chief Executive Simon Bourne said in a statement.
For the first-half ended June 30, the company's adjusted pre-tax profit rose 13.2% to £24.9 million ($33.60 million), particularly helped by recovery at its Landscaping Products unit, which had been pressured by falling demand for maintenance work as well as a rise in competition.
The supplier of products for residential, commercial and public spaces reaffirmed its full-year and medium-term targets. According to company-compiled consensus estimates, Marshalls is expected to report a full-year pretax profit of £49.4 million.
The company said it expects market conditions to remain subdued with no material recovery in end-market demand during 2026.
Marshalls' shares were down 2.6% in early trading.
($1 = £0.7411)
(Reporting by Neeshita Beura in Bengaluru; Editing by Ronojoy Mazumdar)