REG - Marshalls PLC - Half year results
Mon 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250811:nRSK6873Ua&default-theme=true
RNS Number : 6873U Marshalls PLC 11 August 2025
Half year results for the six months ended 30 June 2025
'Transform & Grow' strategy delivers a return to Group revenue growth in
subdued markets
Marshalls plc, a leading manufacturer of sustainable solutions for the built
environment, announces its results for the half year ended 30 June 2025.
£'M H1 2025 H1 2024 Change
Revenue 319.5 306.7 4%
Adjusted results (Notes 1 and 2 below)
Adjusted EBITDA 42.9 50.6 (15%)
Adjusted operating profit 28.4 34.0 (16%)
Adjusted profit before tax 22.0 26.6 (17%)
Adjusted basic EPS - pence 6.6 7.9 (16%)
Adjusted annualised ROCE (%) 7.3 7.6 (0.3ppts)
Interim dividend - pence 2.2 2.6 (15%)
Pre-IFRS 16 net debt 151.6 155.8 3%
Reported results
Operating profit 18.1 28.9 (37%)
Profit before tax 11.7 21.5 (46%)
Basic EPS - pence 3.5 6.4 (45%)
Strategic and operational highlights
· Group returned to revenue growth with tangible early progress in the execution
of the 'Transform & Grow' strategy
· Landscaping Products improvement plan delivered higher volumes and market
share gains. However, end markets remain challenging with subdued demand
exerting pressure on prices, and a less profitable product mix adversely
impacted profitability
· Acceleration of manufacturing footprint optimisation and overhead reduction in
Landscaping Products expected to deliver annualised cost savings of £9
million by 2026
· Strong growth in Roofing Products was led by Viridian Solar and supported by a
robust performance in Marley Roofing reinforcing its market-leading position
· Good performances in Water Management and Mortars drove profitable revenue
growth in Building Products
Financial highlights
· Group revenue increased by four per cent driven by growth in both Building and
Roofing Products, partially offset by modest contraction in Landscaping
Products
· Group adjusted operating profit of £28.4 million reflects improved
profitability in Building and Roofing Products offset by reduced profitability
in Landscaping Products, impacted by targeted investment in pricing, a less
profitable product mix and manufacturing inefficiencies
· Adjusted operating cashflow conversion was strong at 94 per cent on an
annualised basis reflecting continuing disciplined working capital management
· Robust balance sheet with a year-on-year net debt reduction of £4.2 million
and period end leverage of 1.8 times adjusted annualised EBITDA (H1 2024: 1.8
times)
· Interim dividend of 2.2 pence per share in line with dividend policy
Outlook
· The Board is taking decisive action to accelerate the optimisation of the
national manufacturing network and reduce costs whilst continuing to deliver
on all elements of the Landscaping Products performance improvement plan
· Mindful of continuing uncertainty in the macro-economic environment, the Board
currently sees no improvement in market activity levels through the remainder
of 2025, and expects the full-year outturn to be consistent with its revised
guidance(1) issued on 25 July 2025
· Looking further ahead, the Board is encouraged by the Government's commitment
to new housing and infrastructure investment and expects the 'Transform &
Grow' strategy to position the Group well for sustainable growth across all
our reporting segments in the medium term
(1) Company guidance is for adjusted profit before tax for 2025 to be in the
range of £42 million and £46 million.
Matt Pullen, Chief Executive, commented:
"The Group returned to revenue growth of four per cent in the first half of
the year despite a subdued market. This performance reflects the benefits of
our diversified portfolio, with Building and Roofing Products delivering good
revenue and operating profit growth, and Landscaping Products reporting solid
volume growth during the period although at lower profitability.
The Landscaping Products improvement plan is firmly underway, and we have made
solid, early progress with operational improvements. Whilst profit was below
expectations, we have strengthened customer relationships and seen volume
growth in the first half. We are accelerating action to reduce costs and
optimise our national manufacturing network, which is expected to improve
Landscaping Products profitability materially in 2026 and deliver the
turnaround.
We are also delivering our growth strategies in Roofing and Building Products,
building on our successful M&A strategy, by leveraging these growth
engines to build a stronger and more diversified Group. In Roofing Products,
Viridian Solar continues to benefit from its market-leading roof-integrated
solar proposition and the regulatory tailwinds driving energy efficiency in
new homes and Marley Roofing also continued to deliver revenue growth,
reinforcing its leadership position. In Building Products, we have secured new
work in Water Management and are developing operational capability as we
reposition the business to capture growth opportunities in the infrastructure
and wastewater market ahead of the AMP8 investment cycle. While revenue in
Bricks and Masonry contracted, our disciplined approach to pricing has
prioritised margins in a highly competitive environment.
Looking ahead, while the macroeconomic outlook remains uncertain and markets
are likely to stay subdued in the near term, we are encouraged by the
Government's commitment to new housing and infrastructure investment which,
together with our 'Transform & Grow' strategy, positions us well for
sustainable growth across all our businesses in the medium term."
Analyst presentation
There will be a live presentation today at 10:00am at the offices of Peel Hunt
for analysts and investors, which will also be webcast live. The presentation
will be available for analysts and investors who are unable to view the
webcast live and can be accessed on Marshalls' website at www.marshalls.co.uk
(https://protect-eu.mimecast.com/s/zHWuCQnkphX8NoNHPS8Eb) .
Users can register to access the webcast using the following link:
https://brrmedia.news/MSLH_HY25 (https://brrmedia.news/MSLH_HY25)
Notes:
1. The results for the period ended 30 June 2025 have been disclosed after adding
back adjusting items. These are set out in Note 4.
2. This Half Year Financial Report includes alternative performance measures
('APMs'), which are not defined or specified under the requirements of
International Financial Reporting Standards. The Board believes that these
APMs provide stakeholders with important additional information on the
Group. To support this, we have included an accounting policy note on APMs
in the Notes to this Half Year Financial Report, a glossary setting out the
APMs that we use, how we use them, an explanation of how they are calculated,
and a reconciliation of the APMs to the reported results, where relevant.
See Notes 4 and 19 for further details.
Enquiries:
Marshalls plc Tel: +44 (0)1422 314777
Matt Pullen, Chief Executive
Justin Lockwood, Chief Financial Officer
Simon Bourne, Chief Commercial Officer
Hudson Sandler (Financial PR) Tel: +44 20 7796 4133
Dan de Belder Email: marshalls@hudsonsandler.com (mailto:marshalls@hudsonsandler.com)
Harry Griffiths
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
reporting segments: Landscaping Products; Building Products; and Roofing
Products. At a Group, segmental 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.
Chief Executive's Statement
Overview
Against a backdrop of macro-economic uncertainty and continued subdued
activity levels in our key end-markets, we have delivered a performance that
highlights the strength of our broad product offering resulting from the
Group's diversification strategy, and the opportunity of a successful
turnaround in the performance of Landscaping Products. We are on a clear path
to shaping a Group where our long-term profitable growth is driven by the
collective strength of our diverse portfolio of market leading businesses and
brands, ensuring our performance is not determined by any one business unit.
Our return to Group revenue growth reflects the early progress with our
'Transform & Grow' strategy, which is being implemented at pace across the
organisation. This strategy is well-defined and at its centre are our
market-leading brands, which we will leverage to deliver profitable volume
growth and to outperform the market over the medium term. The strong results
in our Building Products and Roofing Products segments partially mitigated the
weakness in Landscaping Products where we are executing the comprehensive
performance improvement plan we initiated last year that is focused on:
· Strengthening leadership and realigning the organisation
· Portfolio simplification and operational efficiency
· Building long-term strategic customer and supplier partnerships
· Developing commercial and operational excellence
These actions have delivered a clear improvement in year-on-year revenue
trends, and they will help reinvigorate the business for sustainable long-term
success. We made progress in network optimisation in the first half of the
year and are taking additional steps in the second half to accelerate this.
These measures are expected to deliver a total annualised benefit of
approximately £9 million, of which around £3 million is expected to be
realised in 2025. We are confident that these actions will deliver a more
dynamic and profitable business going forward.
Our strategic initiatives are underpinned by a continuing commitment to
financial discipline. Strong cash generation delivered a further year-on-year
reduction in net debt and provides a robust platform to support our growth
ambitions. Guided by our purpose, 'Building Tomorrow's World', our strategy
provides a clear foundation to leverage the strengths of our diverse portfolio
and realise our significant potential for growth and value creation.
Strategy update
Landscaping Products
Marshalls Landscaping (Brand Powerhouse) - Driving greater value from the
distinctive national specification pull model
Landscaping end markets remain subdued, with overcapacity versus current
market demand putting pressure on prices. In addition, cumulative inflation in
building materials over several years has driven increased value engineering,
shifting demand toward commodity products and away from value-add solutions.
Despite this backdrop, we have made strong progress in executing our strategy
and performance improvement plan in H1 2025.
Our new Landscaping leadership team has led a business-wide reset, reinforced
our unique national specification model, and positioned the business to
deliver improved margins. New strategic deals supported by targeted price
investment with key distribution partners, have resulted in an increased share
of our landscaping products across their branch networks. This has helped to
deliver a return to volume growth of six per cent in the period in a subdued
market. In response to the shift towards the less profitable product mix
reported in the first half, we have refocused our sales teams on value-add
product ranges, supported by changes to sales incentives. This has resulted
in order intake growth of commercial value-add products in the second quarter
of the year, which will benefit our future revenues. In addition, our
portfolio simplification programme is on track to deliver a 28 per cent
reduction in SKU count, which will reset our product architecture and build a
platform for delivering a stronger mix of value-add products across all
product ranges to enhance future profitability.
The progress with our plans to improve margins is supported by the actions
being taken to optimise our manufacturing footprint. In the first half of
the year, we partially closed one site which unlocked annualised savings of
approximately £3 million, with around half of this benefitting 2025. Further
actions are underway (subject to consultation) to reduce costs and drive
operational efficiency, including moving production closer to the most
profitable markets. Together these two programmes are expected to deliver
annualised savings of approximately £9 million with around £3 million being
realised in 2025. In addition, we currently have a small part of the product
portfolio which is unprofitable, and we will either return this to profit or
exit. These actions position the business for a material improvement in
profitability in 2026.
Roofing Products
Marley Roofing (Brand Powerhouse) - Strengthening roofing heartlands and
driving share in adjacencies
Marley Roofing reinforced its market leadership position in the first half of
the year growing its market share of clay tiles and timber battens. The
business is investing in capital projects that will enhance both product
quality and manufacturing efficiency at two concrete tile manufacturing
sites. In addition, we are investing in bespoke software that will support
our specification selling strategy by enhancing the customer experience and
increasing product attachment rates. Progress continues on integrating the
solar roof system into Marley's full roof offer, with a defined strategy and
ongoing discussions with selected housebuilders ahead of wider rollout.
Viridian Solar (Growth Engine) - Leveraging regulatory tailwinds to accelerate
growth
Viridian Solar's outlook improved further during the first half of 2025
following the Government's announcement on the Future Homes Standard, which
will make solar panels mandatory on most new homes, significantly expanding
the business's addressable market. Implementation timelines are expected this
Autumn and will underpin further market growth after the current regulations
are fully embedded in 2026. Through the first half of this year, Viridian
Solar grew in-line with expectations, driven by the increasing penetration of
new housing built to Part L (2021) regulations. The team continues to
strengthen housebuilder relationships including a two-year extension to a
solus deal with its largest customer for Clearline fusion roof integrated
solar panels. ArcBox sales are growing strongly in the UK given increased
fire safety focus, and three wholesale partners have been appointed in Spain
to support European expansion.
Building Products
Marshalls Water Management (Growth Engine) - Reposition to access growth and
market headroom in water infrastructure
Water Management delivered a strong performance in the first half the year,
with growth in both its core housing markets and wider infrastructure
sector. The team has established framework agreements with several tier one
contractors, building a strong foothold ahead of the AMP8 cycle, with revenue
benefits expected from mid-2026. To support long-term value creation, we have
invested in new design software and delivered an upskilling programme across
engineering and commercial teams, which is enhancing engagement with
specifiers. A detailed capacity and capability review is also underway to
inform a targeted capex plan, which the Board will evaluate in the coming
months to align future investment with high-return growth opportunities.
Marshalls Bricks & Masonry (Growth Engine) - Accelerating concrete
adoption as lower carbon alternative
The first quarter of 2025 saw encouraging demand from housebuilders.
However, increased sector capacity and softening activity levels in the second
quarter intensified price competition. In response, we made a deliberate
strategic decision to protect margins by focusing on the differentiated value
of our lower-carbon brick offering, competing on quality, sustainability, and
long-term performance rather than price, which resulted in lower than planned
revenue in H1. In the second half of the year, we will launch a major
advocacy campaign to reinforce our carbon leadership, positioning our lower
carbon bricks as the sustainable choice for UK construction. This will support
policy engagement, highlight our unique value proposition, and drive
long-term, specification-led demand.
ESG progress
The Group has committed to reaching net-zero across all scopes by 2050,
validated by the Science Based Targets initiative. We are continuing on our
carbon reduction journey, supported by the implementation of new carbon
reporting software that will enable more granular, real-time analysis of our
carbon emissions. With carbon leadership as a strategic pillar of the
'Transform & Grow' strategy, our business units are aligned on priorities
to demonstrate how our product solutions contribute to more sustainable
infrastructure. This is evidenced through our growing number of Environmental
Product Declarations ('EPDs'), our materials innovation programme, and
optimising our national manufacturing and logistics network, all of which
reinforce our commitment to leading the transition to low-carbon construction.
Financial and operational review
Group results
The Group's adjusted results are set out in the following table.
£'m H1 2025 H1 2024 Change (%)
Revenue 319.5 306.7 4%
Adjusted net operating costs (291.1) (272.7) (7%)
Adjusted operating profit 28.4 34.0 (16%)
Net financial expenses (6.4) (7.4) 14%
Adjusted profit before taxation 22.0 26.6 (17%)
Adjusted taxation (5.3) (6.7) 21%
Adjusted profit after taxation 16.7 19.9 (16%)
Adjusted basic EPS - pence 6.6 7.9 (16%)
Adjusted diluted EPS - pence 6.6 7.8 (15%)
Interim dividend - pence 2.2 2.6 (15%)
Group revenue for the six months ended 30 June 2025 was £319.5 million (H1
2024: £306.7 million) which is four per cent higher than 2024. Revenue
growth in Roofing Products and Building Products was eleven per cent and six
per cent respectively, which was partially offset by a modest contraction of
one per cent in Landscaping Products. Group adjusted operating profit
contracted by £5.6 million to £28.4 million, which comprised growth in
Roofing Products and Building Products that was offset by weaker profitability
in Landscaping Products. Group adjusted operating margin reduced by 2.2
percentage points to 8.9 per cent (H1 2024: 11.1 per cent).
Net financial expenses were £6.4 million (H1 2024: £7.4 million). These
expenses comprised financing costs associated with the Group's bank borrowings
of £5.7 million (H1 2024: £6.4 million), IFRS 16 lease interest of £1.0
million (H1 2024: £0.8 million) and a pension related credit of £0.3 million
(H1 2024: £0.2 million charge). The reduction in financial expenses on bank
borrowings in H1 2025 reflects the impact of the lower drawn borrowings and
lower base rates. Adjusted profit before taxation contracted by £4.6
million to £22.0 million reflecting the reduction in operating profit
partially offset by lower financial expenses.
The adjusted effective tax rate was 24 per cent (H1 2024: 25 per cent), which
is broadly in-line with the UK headline corporation tax rate for 2025 and
includes the benefit of a patent box arrangement. Adjusted profit after
taxation contracted by 16 per cent to £16.7 million and earnings per share
also contracted at 16 per cent to 6.6 pence per share.
A reconciliation between the Group's adjusted results and reported results is
set out in the following table, further details are set out at Note 4.
£'m H1 2025 H1 2024 Change (%)
Adjusted operating profit 28.4 34.0 (16%)
Adjusting items (10.3) (5.1) (102%)
Operating profit 18.1 28.9 (37%)
Net financial expenses (6.4) (7.4) 14%
Profit before taxation 11.7 21.5 (46%)
EPS - pence 3.5 6.4 (45%)
The reported operating profit is stated after adjusting items totalling £10.3
million as summarised in the following table, further details are set out at
Note 4.
£'m H1 2025 H1 2024
Amortisation of intangible assets arising on acquisitions (5.2) (5.2)
Restructuring and impairment charges (5.1) -
Contingent consideration - (1.6)
Significant property disposal gain - 1.7
Adjusting items within profit before taxation (10.3) (5.1)
Adjusting items in 2025 comprise the amortisation of intangible assets arising
on the acquisition of subsidiary undertakings of £5.2 million (H1 2024: £5.2
million) and restructuring and impairment charges of £5.1 million (2024:
£nil) arising from a partial site closure and other actions, of which
approximately £2.0 million is a cash cost. Details of the adjusting items
arising in 2024 are set out at Note 4.
Reported profit before tax was £10.3 million lower than the adjusted result
at £11.7 million (H1 2024: £21.5 million), reflecting the impact of the
adjusting items. On a reported basis, the effective tax rate is 24 per cent
and reported earnings per share was 3.5 pence (H1 2024: 6.4 pence).
Segmental performance
The adjusted operating profit is analysed between the Group's reporting
segments as follows:
£'m H1 2025 H1 2024 Change (%)
Landscaping Products 0.3 8.3 (96%)
Building Products 6.9 6.4 8%
Roofing Products 24.8 23.2 7%
Central costs (3.6) (3.9) 8%
Adjusted operating profit 28.4 34.0 (16%)
Landscaping Products
Landscaping Products derives around 42 per cent of its revenues from
commercial & infrastructure, approximately 30 per cent from new build
housing and 28 per cent from private housing RMI.
£'m H1 2025 H1 2024 Change (%)
Revenue 135.4 137.0 (1%)
Segment operating profit 0.3 8.3 (96%)
Segment operating margin % 0.2% 6.1% (5.9 ppts)
The reporting segment delivered revenue of £135.4 million (H1 2024: £137.0
million) which represents a reduction of one per cent compared to H1 2024, but
an improvement on the contraction of eleven per cent reported in the second
half of 2024. This was against a challenging market backdrop with sector-wide
volumes remaining well below historical levels and reflects improved
engagement with key customers, supported by strategic targeted investment in
price. The modest contraction in revenue comprised year-on-year volume growth,
offset by strategic price investment and changes in product mix.
Segment operating profit reduced by £8.0 million to £0.3 million. This was
driven by the targeted investment in price and a less profitable product mix,
which offset the benefit of higher volumes. In addition, the business was
impacted by cost increases and weaker manufacturing efficiency, particularly
in natural stone. These factors resulted in segment operating margins
reducing by 5.9 ppts to 0.2 ppts for the half year.
We took action in the first half to improve the operational efficiency of the
business through the partial closure of a site, which will improve utilisation
of other assets in the network. This will deliver annualised cost savings of
approximately £3 million and around half of this will benefit the second half
of the year. Further actions are planned in the second half to improve
profitability, aiming to increase the total annualised benefit to
approximately £9 million. Alongside this, we remain focused on executing all
key workstreams at pace, positioning us for a material improvement in
performance in 2026.
The investment in the comprehensive performance improvement plan will
reinvigorate the business for long-term success and we remain confident that
this work will deliver a more dynamic, flexible and profitable business going
forward.
Building Products
Building Products generates 66 per cent of its revenues from new housing, 30
per cent from commercial & infrastructure, with the balance being derived
from housing RMI.
£'m H1 2025 H1 2024 Change (%)
Revenue 86.4 81.8 6%
Segment operating profit 6.9 6.4 8%
Segment operating margin % 8.0% 7.8% 0.2 ppts
The segment delivered a good performance in the first half, with revenue
increasing by six per cent to £86.4 million. The revenue growth reflects a
continued strong performance in our Water Management and Mortars business
units partially offset by a contraction in revenue in the Bricks and
Aggregates. Our Water Management business performed strongly, delivering
growth through successful commercial execution in both its core housing
markets and the wider infrastructure sector, supported by improvements in
stock availability and service levels, which have enabled us to win new
customers. In Mortars, we have benefited from a strong service proposition
and relatively modest build rates on housing developments that favours our
ready-to-use mortars. Brick revenues contracted in a competitive market as
it maintained a disciplined pricing strategy, choosing to protect margin
rather than chase volume at lower prices. The Aggregates business unit was
impacted by softer demand and reported lower revenues year-on-year.
Segment operating profit increased by eight per cent to £6.9 million, with an
improved operating margin of 8.0 per cent. Operating profit increased in Water
Management due to higher volumes and an improved product mix, and through
robust price discipline and increased activity levels in Mortars.
Profitability declined in Bricks due to lower volumes and increased modestly
in Aggregates due to improved efficiency.
Roofing Products
Approximately 51 per cent of revenues in this segment are generated from new
housing and around 39 per cent from housing RMI, with the balance generated
from commercial & infrastructure end markets.
£'m H1 2025 H1 2024 Change (%)
Revenue 97.7 87.9 11%
Segment operating profit 24.8 23.2 7%
Segment operating margin % 25.4% 26.4% (1.0 ppts)
The segment reported revenue growth of eleven per cent in the first half of
the year, delivering £97.7 million (H1 2024: £87.9 million). This growth
was delivered by the continued strong performance of Viridian Solar together
with more modest growth from Marley Roofing. Viridian Solar reported revenue
growth of around 50 per cent in the first half of the year driven by the
continued adoption of its market-leading integrated solar systems by national
housebuilders in response to the Part L (2021) building regulations that
require higher levels of energy efficiency in new homes. Marley continued to
build on its market-leading position, growing share in both clay plain tiles
and timber battens and holding share in concrete tiles.
Segment operating profit increased to £24.8 million (H1 2024: £23.2
million), delivering a strong operating margin of 25.4 per cent (H1 2024:
26.4%). This reflected increased profitability from Viridian Solar driven by
strong volume growth and robust pricing discipline. Profitability in Marley
was slightly lower year-on-year due to weaker manufacturing efficiency and
targeted investments aimed at strengthening our commercial capability and
customer engagement. These investments alongside increased capital expenditure
focused on improving manufacturing efficiency and quality have laid the
groundwork for long term growth and continued margin delivery.
Balance sheet, cash flow and funding
A summary of the Group's capital deployment and net assets is set out below.
£'m June June December
2025 2024 2024
Goodwill 324.4 324.4 324.4
Intangible assets 212.2 222.7 217.8
Property, plant & equipment 228.6 240.5 234.8
Right-of-use assets 40.2 24.6 32.4
Net working capital 112.0 106.6 86.9
Net pension asset 26.0 17.3 24.1
Deferred tax (79.7) (84.7) (81.6)
Other net balances (1.3) (6.7) (8.2)
Total capital employed 862.4 844.7 830.6
Pre-IFRS 16 net debt (151.6) (155.8) (133.9)
Leases (40.3) (27.2) (35.4)
Net assets 670.5 661.7 661.3
Total capital employed at June 2025 was £862.4 million, which represents an
increase of £31.8 million compared to December 2024 (June 2024: increase of
£17.7 million). The increase in net working capital in the first six months
of 2025 of £25.1 million reflects the seasonal working capital requirements
of the Group together targeted increases in inventory in Building and Roofing
Products to support volume growth. Net working capital balances are £5.4
million higher than June 2024 due to increased inventory holdings.
The balance sheet value of the Group's defined benefit pension scheme ('the
Scheme') was a surplus of £26.0 million (June 2024: £17.3 million; December
2024: £24.1 million). The amount has been determined by the Scheme's pension
adviser using appropriate assumptions which are in line with current market
expectations. The fair value of the scheme assets at 30 June 2025 was £224.4
million (June 2024: £238.7 million; December 2024: £228.3 million) and the
present value of the scheme liabilities is £198.4 million (June 2024:
£221.4million; December 2024: £204.2 million). The total gain recorded in
the Statement of Comprehensive Income net of deferred taxation was £1.2
million (June 2024; £4.8 million gain; December 2024: £10.0 million gain).
The principal driver of the gain was a change in financial assumptions
underpinning the defined benefit obligation valuation, primarily reductions in
CPI/RPI expectations along with an increase in discount rate. The last formal
actuarial valuation of the defined benefit pension scheme was undertaken on 5
April 2024 and resulted in a surplus of approximately £15 million, on a
technical provisions basis, which was a funding level of 107 per cent. The
Company has agreed with the Trustee that no cash contributions are payable
under the current funding and recovery plan. The next actuarial valuation
will be undertaken as at 5 April 2027.
Adjusted return on capital employed ('ROCE') was 7.3 per cent (June 2024: 7.6
per cent; December 2024: 8.2 per cent) on an annualised basis, with the
year-on-year reduction due to weaker profitability. Adjusted ROCE is
targeted to increase in the medium term to around 15 per cent as the Group
benefits from operational leverage driven by the execution of its strategy and
a recovery in market conditions.
Operating cash flow conversion on an annualised basis at June 2025 was 94 per
cent of adjusted EBITDA (June 2024: 111 per cent, December 2024: 106 per cent)
which demonstrates the consistently strong cash generative nature of the
Group's businesses. The proactive management of working capital combined with
tight control of capital expenditure resulted in a year-on-year reduction in
pre-IFRS16 net debt of £4.2 million to £151.6 million (June 2024: £155.8
million; December 2024: £133.9 million). The Group's syndicated debt facility
totals £315 million with the majority of it maturing in April 2027. At June
2025, £145 million of the Group's revolving credit facility of £160 million
was undrawn, which together with the £155 million term loan, provides the
Group with significant liquidity to fund its strategic and operational plans
going forward. Net debt to EBITDA was 1.8 times at June 2025 on an
annualised adjusted pre-IFRS16 basis (June 2024: 1.8 times; December 2024: 1.5
times). The Group's banking covenants were comfortably met at June 2025.
Dividend
The Group maintains a dividend policy of distributions covered twice by
adjusted earnings with one third being an interim payment and the balance paid
as a final dividend. The Board has declared an interim dividend of 2.2 pence
per share (2024: 2.6 pence), which is in-line with this policy and reflects
the expectation of a reduction in adjusted earnings per share in 2025. The
interim dividend will be paid on 1 December 2025 to shareholders on the
register at the close of business on 24 October 2025. The shares will be
marked ex-dividend on 23 October 2025.
Board changes
As previously announced, Paul Inman will join the Board as a Non-Executive
Director on 15 September 2025. Paul will succeed Graham Prothero as Audit
Committee Chair, when Graham retires from the Board at the end of our 2026
AGM. Diana Houghton, who joined the Board in 2023, will succeed Graham as
Senior Independent Director when he retires. These appointments are part of
our wider succession planning and ensure we have the skills and experience to
support the execution of our strategy and maintain our commitment to
responsible governance.
Outlook
The Board is taking decisive action to accelerate the optimisation of the
national manufacturing network and reduce costs whilst continuing to deliver
on all elements of the Landscaping Products performance improvement plan.
Mindful of continuing uncertainty in the macro-economic environment, the Board
currently sees no improvement in market activity levels through the remainder
of 2025, expects the full-year outturn to be consistent with the revised
guidance issue on 25 July 2025.
Looking further ahead, the Board is encouraged by the Government's commitment
to new housing and infrastructure investment and expects the 'Transform &
Grow' strategy to position the Group well for sustainable growth across all
reporting segments in the medium term.
Matt Pullen
Chief Executive
Condensed consolidated income statement
For the six months ended 30 June 2025
Unaudited Unaudited
six months ended June 2025 six months ended June 2024 Audited
Year ended December 2024
Notes £'m £'m £'m
Revenue 2 319.5 306.7 619.2
Net operating costs 3 (301.4) (277.8) (565.3)
Operating profit 2 18.1 28.9 53.9
Net financial expenses 5 (6.4) (7.4) (14.5)
Profit before tax 11.7 21.5 39.4
Income tax expense 6 (2.8) (5.4) (8.4)
Profit for the financial period 8.9 16.1 31.0
Earnings per share
Basic 7 3.5p 6.4p 12.3p
Diluted 7 3.5p 6.3p 12.2p
Dividend
Pence per share 8 2.2p 2.6p 8.0p
A reconciliation of the Group's reported results to the adjusted results is
set out below.
Unaudited Unaudited
six months ended June 2025 six months ended June Audited
2024 Year ended December 2024
Notes £'m £'m £'m
Operating profit
Operating profit 18.1 28.9 53.9
Adjusting items 4 10.3 5.1 12.8
Adjusted operating profit 28.4 34.0 66.7
Profit before tax
Profit before tax 11.7 21.5 39.4
Adjusting items 4 10.3 5.1 12.8
Adjusted profit before tax 22.0 26.6 52.2
Profit after tax
Profit for the financial period 8.9 16.1 31.0
Adjusting items (net of tax) 4 7.8 3.8 9.5
Adjusted profit after tax 16.7 19.9 40.5
Earnings per share after adding back adjusting items
Basic 7 6.6p 7.9p 16.0p
Diluted 7 6.6p 7.8p 16.0p
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2025
Unaudited Unaudited
six months ended June 2025 six months ended June Audited
2024 Year ended December
2024
£'m £'m £'m
Profit for the financial period 8.9 16.1 31.0
Other comprehensive income/(expense)
Items that will not be reclassified to the Income Statement:
Re-measurements of the net defined benefit surplus 1.6 6.4 13.4
Deferred tax arising (0.4) (1.6) (3.4)
Total items that will not be reclassified to the Income Statement 1.2 4.8 10.0
Items that are or may in the future be reclassified to the Income Statement:
Effective portion of changes in fair value of cash flow hedges (0.3) 0.8 1.6
Fair value of cash flow hedges transferred to the Income Statement (0.9) (0.9) (2.4)
Deferred tax arising 0.2 - 0.2
Exchange difference on retranslation of foreign currency net investment (0.1) (0.1) 0.2
Total items that are or may be reclassified to the Income Statement (1.1) (0.2) (0.4)
Other comprehensive income for the period, net of income tax 0.1 4.6 9.6
Total comprehensive income for the period 9.0 20.7 40.6
Condensed consolidated balance sheet
As at 30 June 2025
Unaudited Unaudited Audited
June 2025 June 2024 December 2024
Notes £'m £'m £'m
Assets
Non-current assets
Goodwill 9 324.4 324.4 324.4
Intangible assets 10 212.2 222.7 217.8
Property, plant and equipment 11 228.6 240.5 234.8
Right-of-use assets 40.2 24.6 32.4
Employee benefits 12 26.0 17.3 24.1
Deferred taxation assets 2.3 1.2 2.1
833.7 830.7 835.6
Current assets
Inventories 140.2 129.5 138.2
Trade and other receivables 109.6 116.8 80.8
Cash and cash equivalents 16.7 36.6 18.9
Assets classified as held for sale 0.7 0.8 1.5
Derivative financial instruments 0.3 1.8 1.1
267.5 285.5 240.5
Total assets 1,101.2 1,116.2 1,076.1
Liabilities
Current liabilities
Trade and other payables 137.8 139.7 132.1
Corporation tax 2.0 2.7 4.2
Lease liabilities 13 5.6 4.7 5.7
Interest-bearing loans and borrowings 14 9.1 - -
Derivative financial instruments 0.3 - -
Provisions - 6.6 6.6
154.8 153.7 148.6
Non-current liabilities
Lease liabilities 13 34.7 22.5 29.7
Interest-bearing loans and borrowings 14 159.2 192.4 152.8
Deferred taxation liabilities 82.0 85.9 83.7
275.9 300.8 266.2
Total liabilities 430.7 454.5 414.8
Net assets 670.5 661.7 661.3
Equity
Called-up share capital 63.2 63.2 63.2
Share premium & merger reserve 341.6 341.6 341.6
Capital redemption reserve & consolidation reserve (137.7) (137.7) (137.7)
Other reserves (0.4) 0.6 0.5
Retained earnings 403.8 394.0 393.7
Total equity 670.5 661.7 661.3
Condensed consolidated cash flow statement
For the six months ended 30 June 2025
Unaudited Unaudited Audited
six months ended June six months ended June Year ended December
2025 2024 2024
Notes £'m £'m £'m
Cash generated from operations 17 9.3 32.8 97.3
Financial expenses paid (6.3) (4.8) (11.7)
Income tax paid (6.7) (2.3) (8.8)
Net cash flow from operating activities (3.7) 25.7 76.8
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 0.8 4.4 4.4
Financial income received - - -
Acquisition of subsidiary undertaking - (2.6) (2.6)
Acquisition of property through corporate structure (2.9) - -
Acquisition of property, plant and equipment (6.3) (3.9) (9.2)
Acquisition of intangible assets (0.5) (1.2) (2.4)
Cash outflow from sale of subsidiary - - -
Net cash flow from investing activities (8.9) (3.3) (9.8)
Cash flows from financing activities
Payments to acquire own shares (0.8) (1.4) (1.4)
Repayment of borrowings (10.0) (40.0) (80.0)
New loans 25.0 25.0 25.0
Cash payment for the principal portion of lease liabilities (3.5) (3.9) (5.3)
Equity dividends paid - - (21.0)
Net cash flow from financing activities 10.7 (20.3) (82.7)
Net (decrease)/increase in cash and cash equivalents (1.9) 2.1 (15.7)
Cash and cash equivalents at the beginning of the 18.9 34.5 34.5
period
Effect of exchange rate fluctuations (0.3) - 0.1
Cash and cash equivalents at the end of the period 16.7 36.6 18.9
Condensed consolidated statement of changes in equity
for the six months ended 30 June 2025
Share capital Share premium & Capital redemption & Other reserves* Retained earnings Total
merger reserve
consolidation reserves
equity
£'m £'m £'m £'m £'m £'m
At 1 January 2025 63.2 341.6 (137.7) 0.5 393.7 661.3
Total comprehensive
income/(expense) for the
period
Profit for the financial period - - - - 8.9 8.9
Other comprehensive
income/(expense)
Foreign currency - - - (0.1) - (0.1)
translation differences
Effective portion of changes - - - (0.3) - (0.3)
in fair value of cash flow
hedges
Net change in fair value of - - - (0.9) - (0.9)
cash flow hedges transferred
to the Income Statement
Deferred tax arising - - - 0.2 - 0.2
Defined benefit plan actuarial - - - - 1.6 1.6
gain
Deferred tax arising - - - - (0.4) (0.4)
Total other comprehensive - - - (1.1) 1.2 0.1
income/(expense)
Total comprehensive - - - (1.1) 10.1 9.0
income/(expense) for the
period
Transactions with owners
Share-based payments - - - - 1.0 1.0
Purchase of own shares - - - (0.8) - (0.8)
Own shares issued under - - - 1.0 (1.0) -
share scheme
Total contributions by and - - - 0.2 - 0.2
distributions to owners
At 30 June 2025 63.2 341.6 (137.7) (0.4) 403.8 670.5
Note*: Other reserves include own shares, hedging reserve and foreign exchange
reserve.
Condensed consolidated statement of changes in equity
for the six months ended 30 June 2024
Share capital Share premium & Capital redemption & Other reserves* Retained earnings Total
merger reserve
consolidation reserves
equity
£'m £'m £'m £'m £'m £'m
At 1 January 2024 63.2 341.6 (137.7) 1.1 373.1 641.3
Total comprehensive
income/(expense) for the
period
Profit for the financial period - - - - 16.1 16.1
Other comprehensive
income/(expense)
Foreign currency - - - (0.1) - (0.1)
translation differences
Effective portion of changes - - - 0.8 - 0.8
in fair value of cash flow
hedges
Net change in fair value of - - - (0.9) - (0.9)
cash flow hedges transferred
to the Income Statement
Deferred tax arising - - - - - -
Defined benefit plan actuarial - - - - 6.4 6.4
gain
Deferred tax arising - - - - (1.6) (1.6)
Total other comprehensive - - - (0.2) 4.8 4.6
income/(expense)
Total comprehensive - - - (0.2) 20.9 20.7
income/(expense) for the
period
Transactions with owners
Share-based payments - - - - 1.1 1.1
Purchase of own shares - - - (1.4) (1.4)
Own shares issued under - - - 1.1 (1.1) -
share scheme
Total contributions by and - - - (0.3) - (0.3)
distributions to owners
At 30 June 2024 63.2 341.6 (137.7) 0.6 394.0 661.7
Note*: Other reserves include own shares, hedging reserve and foreign exchange
reserve.
Condensed consolidated statement of changes in equity
for the year ended 31 December 2024
Share capital Share premium & Capital redemption & Other reserves* Retained earnings Total
merger reserve
consolidation reserves
equity
£'m £'m £'m £'m £'m £'m
At 1 January 2024 63.2 341.6 (137.7) 1.1 373.1 641.3
Total comprehensive
income/(expense) for the
period
Profit for the financial period - - - - 31.0 31.0
Other comprehensive
income/(expense)
Foreign currency - - - 0.2 - 0.2
translation differences
Reclassification on sale of - - - - - -
subsidiary
Effective portion of changes - - - 1.6 - 1.6
in fair value of cash flow
hedges
Net change in fair value of - - - (2.4) - (2.4)
cash flow hedges transferred
to the Income Statement
Deferred tax arising - - - 0.2 - 0.2
Defined benefit plan actuarial - - - - 13.4 13.4
loss
Deferred tax arising - - - - (3.4) (3.4)
Total other comprehensive - - - (0.4) 10.0 9.6
income/(expense)
Total comprehensive - - - (0.4) 41.0 40.6
income/(expense) for the
period
Transactions with owners
Share-based payments - - - - 1.8 1.8
- -
Dividends to equity shareholders - - - - (21.0) (21.0)
Purchase of own shares - - - (1.4) - (1.4)
Own shares issued under - - - 1.2 (1.2) -
share scheme
Total contributions by and - - - (0.2) (20.4) (20.6)
distributions to owners
At 31 December 2024 63.2 341.6 (137.7) 0.5 393.7 661.3
Note*: Other reserves include own shares, hedging reserve and foreign exchange
reserve.
Notes to the condensed consolidated financial statements
For the six months ended 30 June 2025
1. Basis of preparation
These unaudited condensed consolidated interim financial statements for the
six months ended 30 June 2025 have been prepared in accordance with the
Disclosure and Transparency Rules ('DTR') of the Financial Conduct Authority
and with IAS 34 'Interim Financial Reporting' as adopted by the United
Kingdom. These condensed consolidated interim financial statements should be
read in conjunction with the Annual Report and Accounts ('the Annual Report')
for the year ended 31 December 2024, which have been prepared in accordance
with United Kingdom adopted international accounting standards and
International Financial Reporting Standards ('IFRS') as issued by the
International Accounting Standards Board ('IASB'). These condensed
consolidated interim financial statements were approved for release on 11
August 2025.
These condensed consolidated interim financial statements do not comprise
statutory accounts within the meaning of Section 434 of the Companies Act
2006. The Annual Report for the year ended 31 December 2024 were approved by
the Board on 17 March 2025 and delivered to the Registrar of Companies. The
Annual Report contained an unqualified audit report and did not include an
emphasis of matter paragraph or any statement under Section 498 of the
Companies Act 2006. The Annual Report is available on the Group's website
(www.marshalls.co.uk (http://www.marshalls.co.uk) ).
The accounting policies applied to prepare these condensed consolidated
interim financial statements are consistent with those applied in the most
recent Annual Report for the year ended 31 December 2024.
The Group operates a formal risk management process, the details of which are
set out on pages 54 to 56 of the Annual Report for the year ended 31 December
2024. The risks assessed in preparing these condensed consolidated interim
financial statements are consistent with those set out on pages 57 to 64 of
the Annual Report and an update on those risks is set out at Note 20 of this
report.
Going concern
In assessing the appropriateness of adopting the going concern basis in the
preparation of this Half Year Financial Report, the Board has considered the
Group's financial forecasts and its principal risks for a period of at least
12 months from the date of this report. The forecasts included projected
profit and loss, balance sheet, cash flows, headroom against debt facilities
and covenant compliance. As noted above, the Group's principal risks are set
out in the 2024 Annual Report and Accounts and an update is included in this
report.
The financial forecasts have been stress tested in downside scenarios to
assess the impact on future profitability, cash flows, funding requirements
and covenant compliance. The scenarios comprise a more severe economic
downturn (which represents the Group's most significant risk) than that
included in the base case forecast, and a reverse stress test on our financial
forecasts to assess the extent to which an economic downturn would need to
impact on revenues in order to breach a covenant. This showed that revenue
would need to deteriorate significantly from the financial forecast and the
Directors have a reasonable expectation that it is unlikely to deteriorate to
this extent.
Details of the Group's funding position are set out in Note 14. The Group has
a syndicated bank facility of £315 million that principally matures in April
2027. At 30 June 2025, £145 million of the facility was undrawn (June 2024:
£145 million undrawn), which is broadly in-line with December 2024 (£160
million undrawn) despite the Group's seasonal increase in working capital
requirements and the final Viridian Solar contingent consideration payment of
£6.6 million. There are two financial covenants in the bank facility that
are tested on a semi-annual basis and the Group maintains good cover against
these with pre-IFRS 16 net debt to EBITDA of 1.8 times (covenant maximum of
three times) and interest cover of 5.9 times (covenant minimum of three
times).
Taking these factors into account, the Board has the reasonable expectation
that the Group has adequate resources to continue in operation for the
foreseeable future and for this reason, the Board has adopted the going
concern basis in preparing this Half Year Financial Report.
Alternative performance measures and adjusting items
The Group uses alternative performance measures ("APMs") which are not defined
or specified under IFRS. The Group believes that these APMs, which are not
considered to be a substitute for IFRS measures, provide additional helpful
information. APMs are consistent with how business performance is planned,
reported and assessed internally by management and the Board and provide
additional comparative information. A glossary setting out the APMs that the
Board use, how they are used, an explanation of how they are calculated, and a
reconciliation of the APMs to the reported results, where relevant is set out
at Note 19.
Adjusting items are items that are unusual because of their size, nature or
incidence and which the Directors consider should be disclosed separately to
enable a full understanding of the Group's results and to demonstrate the
Group's capacity to deliver dividends to shareholders. The adjusted results
should not be regarded as a complete picture of the Group's financial
performance, which is presented in the total results. Details of the
adjusting items are disclosed in Note 4 and Note 19.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of condensed consolidated financial statements requires the
Group to make estimates and judgements that affect the application of policies
and reported accounts. Critical judgements represent key decisions made by the
Board in the application of the Group accounting policies. Where a significant
risk of materially different outcomes exists due to the Board's assumptions or
sources of estimation uncertainty, this will represent a critical accounting
estimate. Estimates and judgements are continually evaluated and are based on
historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Actual
results may differ from these estimates. The estimates and judgements which
have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities are discussed below.
Critical accounting judgements
The following critical accounting judgements has been made in the preparation
of the condensed consolidated financial statements:
· As noted above, adjusting items have been highlighted separately due to their
size, nature or incidence to provide a full understanding of the Group's
results and to demonstrate the Group's capacity to deliver dividends to
shareholders. The determination of whether items merit treatment as an
adjusting item is a matter of judgement. Note 4 sets out details of the
adjusting items.
Sources of estimation uncertainty
The Directors consider the following to be key sources of estimation
uncertainty:
· In arriving at the accounting value of the Group's defined benefit pension
scheme, key assumptions have to be made in respect of factors including
discount rates and inflation rates. These are determined on the basis of
advice received from a qualified actuary. These estimates may be different
to the actual outcomes. See further information in Note 12.
· The carrying value of goodwill is reviewed on an annual basis or more
frequently if there is an indication of impairment, in accordance with
IAS36. This review requires the use of cash flow projections based on a
financial forecast that are discounted at an appropriate market-based discount
rate. The assumption on the market-based discount rate is determined based
on the advice of the Group's financial advisor. The actual cash flows
generated by the business may be different to the estimates included in the
forecasts. See further information in Note 9.
2. Segmental analysis
IFRS 8 "Operating Segments" requires operating segments to be identified on
the basis of discrete financial information about components of the Group that
are regularly reviewed by the Group's Chief Operating Decision Maker ('CODM')
to allocate resources to the segments and to assess their performance. The
CODM at Marshalls is the Board. The Group reports under three reporting
segments, namely Landscaping Products, Building Products and Roofing
Products. Landscaping Products comprises the Group's Commercial and Domestic
landscaping businesses and Landscape Protection. Building Products comprises
the Group's Water Management, Bricks and Masonry, Mortars and Screeds and
Aggregate businesses. Roofing Products comprises Marley Roofing and Viridian
Solar.
Segment revenues and operating profit
Unaudited Unaudited Audited
six months ended June 2025 six months ended June year ended December
£'m 2024 2024
£'m £'m
Revenue
Landscaping Products 135.4 137.0 268.3
Building Products 86.4 81.8 164.6
Roofing Products 97.7 87.9 186.3
Revenue 319.5 306.7 619.2
Operating profit
Landscaping Products 0.3 8.3 10.7
Building Products 6.9 6.4 14.1
Roofing Products 24.8 23.2 49.4
Central costs (3.6) (3.9) (7.5)
Segment adjusted operating profit 28.4 34.0 66.7
Adjusting items (see Note 4) (10.3) (5.1) (12.8)
Reported operating profit* 18.1 28.9 53.9
*Operating profit as per Condensed Consolidated Income Statement
The Group has two customers which contributed more than 10 per cent of total
revenue in the current and prior year. The accounting policies of the three
operating segments are the same as the Group's accounting policies. Segment
profit represents the profit earned without allocation of certain central
administration costs that are not capable of allocation. Centrally
administered overhead costs that relate directly to the reportable segment are
included within the segment's results.
The geographical destination of revenue is the United Kingdom £319.0 million
(six months ended June 2024: £305.9 million; year ended December 2024:
£617.8 million) and Rest of the World £0.5 million (six months ended June
2024: £0.8 million; year ended December 2024: £1.4 million).
Segment assets
Unaudited Unaudited Audited
June 2025 June 2024 December 2024
£'m £'m £'m
Segment assets
Landscaping Products 218.8 218.4 222.6
Building Products 143.0 140.2 142.2
Roofing Products 584.5 583.9 584.3
Unallocated assets 154.9 173.7 127.0
Total 1,101.2 1,116.2 1,076.1
For the purpose of monitoring segment performance and allocating resources
between segments, the Group's CODM monitors the property, plant and equipment,
right-of-use assets, intangible assets and inventory. Assets used jointly by
reportable segments are not allocated to individual reportable segments.
Capital additions
Unaudited Unaudited Audited
six months ended June 2025 six months ended June year ended December
£'m 2024 2024
£'m £'m
Capital additions
Landscaping Products 7.2 12.0 21.2
Building Products 2.2 0.6 8.2
Roofing Products 5.0 2.4 3.8
Total 14.4 15.0 33.2
Capital additions comprise property, plant and equipment (£6.5 million),
right-of-use assets (£7.4 million) and intangible assets (£0.5 million).
Depreciation and amortisation
Unaudited Unaudited Audited
six months ended June 2025 six months ended June year ended December
£'m 2024 2024
£'m £'m
Depreciation and amortisation
Landscaping Products 7.8 10.1 17.8
Building Products 3.9 3.9 8.0
Roofing Products 2.8 2.6 5.3
Segment depreciation and amortisation 14.5 16.6 31.1
Adjusting items 5.2 5.2 10.4
Depreciation and amortisation 19.7 21.8 41.5
Depreciation and amortisation includes £5.2 million of amortisation of
intangible assets arising from the purchase price allocation exercises (six
months ended June 2024: £5.2 million; year ended December 2024: £10.4
million) comprising £0.1 million (six months ended June 2024: £0.1 million;
year ended December 2024: £0.1 million) in Landscaping Products, £0.6
million in Building Products (six months ended June 2024: £0.6 million; year
ended December 2024: £1.1 million) and £4.5 million in Roofing Products (six
months ended June 2024: £4.5 million; year ended December 2024: £9.2
million). This amortisation has been treated as an adjusting item (Note 4).
3. Net operating costs
Unaudited Unaudited Audited
six months ended June 2025 six months ended June year ended December
£'m 2024 2024
£'m £'m
Raw materials and consumables 119.4 113.0 237.5
Changes in inventories of finished goods and work in progress (0.7) (5.6) (14.4)
Personnel costs 68.0 68.5 132.8
Depreciation of property, plant and equipment 10.1 11.7 22.1
Depreciation of right-of-use assets 3.5 4.1 7.3
Amortisation of intangible assets 6.1 6.0 12.1
Asset impairments 2.6 - -
Own work capitalised (0.2) (0.6) (1.3)
Other operating costs 90.8 84.8 174.0
Redundancy and other costs 2.5 - -
Operating costs 302.1 281.9 570.1
Other operating income (0.8) (2.2) (2.9)
Net loss/(gain) on asset and property disposals 0.1 (1.9) (1.9)
Net operating costs 301.4 277.8 565.3
Adjusting items (Note 4) (10.3) (5.1) (12.8)
Adjusted net operating costs 291.1 272.7 552.5
4. Adjusting items
Unaudited Unaudited Audited
six months ended June 2025 six months year ended December
£'m ended June 2024
2024 £'m
£'m
Amortisation of intangible assets arising on acquisitions (5.2) (5.2) (10.4)
Restructuring and similar charges (2.5) - -
Impairment of property, plant and equipment (2.6) - -
Transformation costs - - (2.5)
Contingent consideration - (1.6) (1.6)
Significant property disposal gain - 1.7 1.7
Total adjusting items before taxation (10.3) (5.1) (12.8)
Current tax on adjusting items (Note 6) 0.6 - 0.7
Deferred tax on adjusting items (Note 6) 1.9 1.3 2.6
Total adjusting items after taxation (7.8) (3.8) (9.5)
· Amortisation of intangible assets arising on acquisitions is principally in
respect of values recognised for brands and customer relationships in Roofing
Products.
· Restructuring and similar charges arose during major restructuring exercises
to reduce manufacturing capacity and the cost base.
· The impairment of property, plant and equipment arose in connection with the
major restructuring exercises.
· Transformation costs in 2024 represent costs incurred in respect of the
'Transform & Grow' strategy.
· The additional contingent consideration in 2024 relates to the reassessment of
the amounts that will become payable to vendors arising in relation to
Marley's acquisition of Viridian Solar Limited in 2021. The final payment
was made under that agreement in the first half of 2025 and there are no
further profit and loss account charges.
· The significant property disposal gain arose on the disposal of the Group's
former manufacturing site in Carluke.
5. Financial expenses
Unaudited Unaudited Audited
six months ended June 2025 six months year ended December
£'m ended June 2024
2024 £'m
£'m
Net interest expense on bank loans 5.7 6.4 12.5
Interest expense of lease liabilities 1.0 0.8 1.7
Net interest (credit)/expense on defined benefit pension scheme (0.3) 0.2 0.3
Financial expenses 6.4 7.4 14.5
Net interest (credit)/expense on the defined benefit pension scheme is
disclosed net of Company recharges for scheme administration.
6. Income tax expense
Unaudited Unaudited Audited
six months ended June 2025 six months year ended December
£'m ended June 2024
2024 £'m
£'m
Current tax expense
Current year 4.8 6.4 13.7
Deferred taxation expense
Origination and reversal of temporary differences:
Current year (2.0) (1.0) (4.0)
Adjustments for prior years - - (1.3)
Total tax expense 2.8 5.4 8.4
Current tax on adjusting items (Note 4) 0.6 - 0.7
Deferred tax on adjusting items (Note 4) 1.9 1.3 2.6
Total tax expenses after adding back adjusting items 5.3 6.7 11.7
7. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
ordinary shareholders for the financial period by the weighted average number
of shares in issue during the period. Adjusted basic earnings per share is
calculated by dividing the adjusted profit attributable to ordinary
shareholders for the financial period by the weighted average number of shares
in issue during the period. Diluted earnings per ordinary share is
calculated by dividing the profit attributable to ordinary shareholders by the
sum of the weighted average number of shares in issue and potentially dilutive
shares. The calculation of adjusted profit attributable to ordinary
shareholders is calculated as follows:
Unaudited Unaudited Audited
six months ended June 2025 six months year ended December
£'m ended June 2024
2024 £'m
£'m
Profit attributable to ordinary shareholders 8.9 16.1 31.0
Adjusting items (net of tax) 7.8 3.8 9.5
Adjusted profit attributable to ordinary shareholders 16.7 19.9 40.5
The calculation of the weighted average number of shares and diluted weighted
average number of shares is calculated as follows:
Unaudited Unaudited Audited
six months ended June 2025 six months year ended December
ended June 2024
2024
Number Number Number
Number of issued ordinary shares 252,968,728 252,968,728 252,968,728
Effect of shares transferred into Employee Benefit Trust (126,677) (201,653) (160,895)
Weighted average number of ordinary shares 252,842,051 252,767,075 252,807,833
Effect of potentially dilutive ordinary shares 1,308,695 1,085,718 999,738
Diluted weighted average number of ordinary shares 254,150,746 253,852,793 253,807,571
8. Dividends
The Group maintains a dividend policy of distributions covered twice by
adjusted earnings. The Board has declared an interim dividend for 2025 of
2.2 pence per qualifying Ordinary Share amounting to £5.6 million, to be paid
on 1 December 2025 to shareholders registered at the close of business on 24
October 2025. The shares will be marked ex-dividend on 23 October 2025.
9. Goodwill
Unaudited Unaudited Audited
June 2025 June 2024 December 2024
£'m £'m £'m
Net book value at end of period 324.4 324.4 324.4
All goodwill has arisen from business combinations. The carrying amount of
goodwill is allocated across cash generating units ("CGUs") which represent
the lowest level within the Group at which the associated goodwill is
monitored for management purposes and is consistent with the operating
segments set out in Note 2. The Group has three material CGUs, Landscaping
Products, Building Products and Roofing Products. The carrying amount of
goodwill has been allocated to CGUs at each period end is as follows:
Unaudited Unaudited Audited
June 2025 June 2024 December 2024
£'m £'m £'m
Landscaping Products 34.8 34.8 34.8
Building Products 43.7 43.7 43.7
Roofing Products 245.9 245.9 245.9
Net book value at end of period 324.4 324.4 324.4
During the period, the performance of the Marshalls Landscaping CGU was
impacted by subdued market conditions leading to profits being below
expectation. This was considered an indicator of impairment, and a formal
impairment review was conducted.
The review compared the carrying amount of the CGU to its recoverable amount,
which was determined based on a value-in-use calculation. This assessment
concluded that the recoverable amount exceeded the carrying amount and no
impairment was required. The value-in-use calculation uses cash flow
projections based on management's latest forecasts covering a five-year period
and a post-tax discount rate of 10 per cent per annum (2024: 10.0 per cent per
annum). Within the five-year forecast period, cashflows are dependent on the
successful execution of the Landscaping Products improvement plan and the
'Transform & Grow' strategy which includes operational efficiency
improvements, delivering price over cost increases, commercial improvements
and growth in volumes aligned with industry consensus for the market. Cash
flows beyond that five-year period have been extrapolated using a 2.4 per cent
(2024: 2.4 per cent) per annum growth rate. This growth rate reflects the
long-term structural growth in demand for the segment's products. The
combination of these assumptions is included within the value-in-use of the
Landscaping Products CGU and given the subjective nature of these assumptions
it is reasonably possible that they will not occur as the directors
forecast. The Group has performed a sensitivity analysis on the reasonably
possible changes in key assumptions in the impairment model for the
Landscaping Products CGU. The results of the sensitivities performed show that
a reduction in forecast cashflows of around 16 per cent would be required
before the carrying amount of the CGU exceeded the value-in-use.
No other indicators of impairment across other CGUs were identified during H1
2025. A full impairment review will be conducted for all CGUs as part of the
2025 year-end process.
10. Intangible assets
Unaudited Unaudited Audited
June 2025 June 2024 December 2024
£'m £'m £'m
Net book value at start of period 217.8 227.5 227.5
Additions 0.5 1.2 2.4
Amortisation (6.1) (6.0) (12.1)
Net book value at end of period 212.2 222.7 217.8
Amortisation includes £5.2 million (six months ended June 2024: £5.2
million, year ended December 2024: £10.4 million) relating to intangible
assets arising on acquisitions that is accounted for as an adjusting item (see
Note 4). Included in software additions is £0.2 million (six months ended
June 2024: £0.6 million; year ended December 2024: £1.0 million) of own work
capitalised.
11. Property, plant and equipment
Unaudited Unaudited Audited
June 2025 June 2024 December 2024
£'m £'m £'m
Net book value at start of period 234.8 249.4 249.4
Additions 6.5 3.0 9.2
Depreciation (10.1) (11.7) (22.1)
Impairment (2.6) - -
Other movements - (0.2) (1.7)
Net book value at end of period 228.6 240.5 234.8
Impairment in the six months end June 2025 represents the assets being written
down to fair value less cost to sell of £2.6 million in relation to major
restructuring exercises at certain facilities in the Group's operational
network.
12. Retirement benefit asset
The amounts recognised in the balance sheet in respect of the defined benefit
asset are as follows:
Unaudited Unaudited Audited
June 2025 June 2024 December 2024
£'m £'m £'m
Present value of Scheme liabilities (198.4) (221.4) (204.2)
Fair value of Scheme assets 224.4 238.7 228.3
Net amount recognised (before deferred tax) 26.0 17.3 24.1
The Company sponsors a funded defined benefit pension scheme in the UK (the
"Scheme"). The Scheme is administered within a trust which is legally separate
from the Company. The Trustee Board is appointed by both the Company and the
Scheme's membership and acts in the interest of the Scheme and all relevant
stakeholders, including the members and the Company. The Trustee is also
responsible for the investment of the Scheme's assets.
The Scheme provides pension and lump sums to members on retirement and to
dependants on death. The defined benefit section closed to future accrual of
benefits on 30 June 2006 with the active members becoming entitled to a
deferred pension. Members no longer pay contributions to the defined benefit
section. Company contributions to the defined benefit section after this date
are used to fund any deficit in the Scheme and the expenses associated with
administering the Scheme, as determined by regular actuarial valuations.
The Scheme poses a number of risks to the Company, for example longevity risk,
investment risk, interest rate risk, inflation risk and salary risk. The
Trustee is aware of these risks and uses various techniques to control them.
The Trustee has a number of internal control policies, including a Risk
Register, which are in place to manage and monitor the various risks it faces.
The Trustee's investment strategy incorporates the use of liability-driven
investments ("LDIs") to minimise sensitivity of the actuarial funding position
to movements in interest rates and inflation rates.
The defined benefit section of the Scheme is subject to regular actuarial
valuations, which are usually carried out every three years. The next
actuarial valuation is being carried out with an effective date of 5 April
2027. These actuarial valuations are carried out in accordance with the
requirements of the Pensions Act 2004 and so include deliberate margins for
prudence. This contrasts with these accounting disclosures which are
determined using best estimate assumptions. The last formal actuarial
valuation was carried out as at 5 April 2024 which resulted in a surplus of
£15 million, on a technical provisions basis and therefore no payments are
required to be made to the Scheme.
13. Lease liabilities
Unaudited Audited
Unaudited June 2024 December 2024
June 2025
£'m
£'m
£'m
Analysed as:
Amounts due for settlement within twelve months 5.6 4.7 5.7
Amounts due for settlement after twelve months 34.7 22.5 29.7
Lease liabilities 40.3 27.2 35.4
Lease liabilities are calculated at the present value of the lease payments
that are not paid at the commencement date. For the six months ended June
2025, the average effective borrowing rate was 5.0 per cent (six months ended
June 2024: 4.1 per cent; year ended December 2024: 5.0 per cent). Interest
rates are fixed at the contract date. All leases are on a fixed repayment
basis and no arrangements have been entered into for contingent rental
payments.
The total cash outflow in relation to leases was £4.5 million (six months to
June 2024: £4.8 million; year ended December 2024: £7.0 million). The total
cash outflow in relation to short-term and low value leases was £2.9 million
(six months ended June 2024: £1.7 million; year ended December 2024: £2.7
million).
14. Interest bearing loans and borrowings
Unaudited Unaudited Audited
June 2025 June 2024 December 2024
£'m
£'m
£'m
Analysed as:
Current liabilities 9.1 - -
Non-current liabilities 159.2 192.4 152.8
Interest bearing loans and borrowings 168.3 192.4 152.8
Interest bearing loans and borrowings are stated net of unamortised debt
arrangement fees of £1.7 million (June 2024: £2.6 million; December 2024:
£2.2 million). The total syndicated bank facility at June 2025 was £315
million (June 2023: £340 million; December 2024: £315 million), of which
£145 million (June 2024: £145 million; December 2024: £160 million)
remained unutilised. £7.8 million of the undrawn facility available at June
2025 expires in less than one years and £137.2 million matures between one
and two years.
The Group's committed bank facilities are charged at variable rates based on
SONIA plus a margin. The Group's bank facility continues to be aligned with
the strategy to ensure that headroom against the available facility remains at
appropriate levels and are structured to provide committed medium-term debt.
Marshalls has a receivables purchase agreement with a UK bank and is party to
a reverse factoring finance arrangement between a UK bank and one of the
Group's key customers (the principal relationship is between the customer and
its partner bank). Under these agreements, Marshalls has the option of
transferring the ownership of certain customer receivables to the bank or to
receive advance payment of approved invoices from the key customer,
respectively. Utilising either agreement results in the derecognition of
receivables from the Group's balance sheet. The Group utilises these
facilities periodically in order to help manage its short-term funding
requirements and pays a finance charge upon utilisation.
15. Analysis of net debt
Unaudited Unaudited Audited
June 2025 June 2024 December 2024
£'m
£'m
£'m
Cash at bank and in hand 16.7 36.6 18.9
Debt due within 1 year (9.1) - -
Debt due after 1 year (159.2) (192.4) (152.8)
Lease liabilities (40.3) (27.2) (35.4)
Net debt (191.9) (183.0) (169.3)
16. Reconciliation of net cash flow to movement in net debt
Unaudited Unaudited Audited
six months ended June 2025 six months year ended December
£'m ended June 2024
2024
£'m
£'m
Net (decrease)/increase in cash equivalents (1.9) 2.1 (15.7)
Cash (inflow)/outflow from movement in bank borrowings (15.0) 15.0 55.0
Cash outflow from lease repayments 3.5 3.9 5.3
New leases entered into (8.4) (10.8) (20.4)
Lease liability de-recognised - 24.4 24.4
Effect of prepaid arrangement fees and exchange rate fluctuations (0.8) - (0.3)
Movement in net debt in the period (22.6) 34.6 48.3
Net debt at beginning of the period (169.3) (217.6) (217.6)
Net debt at end of the period (191.9) (183.0) (169.3)
17. Reconciliation of profit after taxation to cash generated
from operating activities
Unaudited Unaudited Audited
six months ended June 2025 six months year ended December
ended June 2024
2024
Notes £'m £'m £'m
Profit after taxation 8.9 16.1 31.0
Income tax 6 2.8 5.4 8.4
Profit before tax 11.7 21.5 39.4
Adjustments for:
Depreciation of property, plant and equipment 11 10.1 11.7 22.1
Asset impairments 4 2.6 - -
Depreciation of right-of-use assets 3.5 4.1 7.3
Amortisation 6.1 6.0 12.1
Loss/(gain) on sale of property, plant and equipment 0.1 (1.9) (1.9)
Equity settled share-based payments 1.0 1.1 1.1
Financial income and expenses (net) 5 6.4 7.4 14.5
Operating cash flow before changes in working capital 41.5 49.9
94.6
(Increase)/decrease in trade and other receivables (23.7) (23.3) 13.8
(Increase)/decrease in inventories (2.0) (4.4) (13.1)
(Decrease)/increase in trade and other payables (6.5) 10.6 2.0
Cash generated from operations 9.3 32.8 97.3
18. Fair values of financial assets and financial liabilities
A comparison by category of the book values and fair values of the financial
assets and liabilities of the Group at 30 June 2025 is shown below:
Book value Fair value
Unaudited Unaudited Audited Unaudited Unaudited Audited
six months ended June 2025 six months year ended December six months ended June 2025 six months year ended December
£'m ended June 2024 £'m ended June 2024
2024 £'m 2024 £'m
£'m £'m
Trade and other receivables 106.0 110.9 76.1 106.0 110.9 76.1
Cash and cash equivalents 16.7 36.6 18.9 16.7 36.6 18.9
Bank loans (168.3) (192.4) (152.8) (157.1) (192.1) (146.1)
Trade payables, other payables and provisions (123.1) (123.5) (122.8) (123.1) (123.5) (122.8)
Derivatives - 1.8 1.1 - 1.8 1.1
Contingent consideration - (6.6) (6.6) - (6.6) (6.6)
Financial instrument assets and liabilities - net (168.7) (173.2) (186.1)
Non-financial instrument assets and liabilities - net 839.2 834.9 847.4
Net assets 670.5 661.7 661.3
Estimation of fair values
The following summarises the major methods and assumptions used in estimating
the fair values of financial instruments reflected in the table. Other than
contingent consideration, which uses a level three basis, all use level two
valuation techniques.
(a) Derivates
Derivative contracts are either marked to market using listed market prices or
by discounting the contractual forward price at the relevant rate and
deducting the current spot rate. For interest rate swaps, broker quotes are
used.
(b) Interest-bearing loans and borrowings
Fair value is calculated based on the expected future principal and interest
cash flows discounted at the market rate of interest at the balance sheet
date.
(c) Trade and other receivables/payables
For receivables/payables with a remaining life of less than one year, the
notional amount is deemed to reflect the fair value. All other
receivables/payables are discounted to determine the fair value.
(d) Contingent consideration
The contingent consideration has been calculated based on the Group's
expectation of what it will pay in relation to the post-acquisition
performance of the acquired entities. This represents level three in the
fair value hierarchy.
(e) Fair value hierarchy
The table below analyses financial instruments, measured at fair value, into a
fair value hierarchy based on the valuation techniques used to determine fair
value.
· Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities.
· Level 2: inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
· Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
19. Alternative performance measures
The APMs set out by the group are made-up of earnings-based measures and ratio
measures with a selection of these measures being stated after adjusting
items.
Measures stated after excluding adjusting items
These performance measures are calculated using either the associated reported
measure or alternative performance measure after adding back the adjusting
items detailed in Note 4. The Group's accounting policy on adjusting items is
set out in Note 1, basis of preparation.
APM Definition and/or purpose
Adjusted operating profit, adjusted profit before tax, adjusted profit after The Directors assess the performance of the Group using these measures
tax, adjusted earnings per share, adjusted EBITA, adjusted EBITDA and adjusted including when considering dividend payments.
operating cash flow
Adjusted return on capital employed Adjusted return on capital employed is calculated as adjusted EBITA (on
annualised basis) divided by shareholders' funds plus net debt at the period
end. It is designed to give further information about the returns being
generated by the Group as a proportion of capital employed.
Adjusted operating cash flow conversion Operating cash flow conversion is calculated by dividing adjusted operating
cash flow by adjusted EBITDA (both on an annualised basis). Adjusted
operating cash flow is calculated by adding back adjusting items paid, net
financial expenses paid, and taxation paid. It illustrates the rate of
conversion of profitability into cash flow.
Pre-IFRS 16 measures
The Group's banking covenants are assessed on a pre-IFRS 16 basis. In order to
provide transparency and clarity regarding how the Group's compliance with
banking covenants, the following performance measures and their calculations
have been presented:
APM Definition and purpose
Pre-IFRS16 adjusted EBITDA Pre-IFRS16 adjusted EBITDA is adjusted EBITDA excluding right-of-use asset
depreciation and profit or losses on the sale of property, plant and
equipment.
Pre-IFRS16 net debt Pre-IFRS 16 net debt comprises cash at bank and in hand and bank loans but
excludes lease liabilities. It shows the overall net indebtedness of the
Group on a pre-IFRS 16 basis.
Pre-IFRS16 net debt leverage This is calculated by dividing pre-IFRS16 net debt by adjusted pre-IFRS16
EBITDA (on an annualised basis) to provide a measure of leverage.
Other definitions
APM Definition and purpose
EBITDA EBITDA is earnings before interest, taxation, depreciation, and amortisation
and provides users with further information about the profitability of the
business before financing costs, taxation, and non-cash charges.
EBITA EBITA is earnings before interest, taxation and amortisation and provides
users with further information about the profitability of the business before
financing costs, taxation, and amortisation.
Reconciliations of IFRS reported income statement measures to income statement
APMs is set out in the following three tables. A reconciliation of operating
profit to pre-IFRS16 adjusted EBITDA is set out below:
Unaudited Unaudited Audited
six months ended June 2025 six months year ended December
ended June 2024
2024
£'m £'m £'m
Operating profit 18.1 28.9 53.9
Adjusting items (Note 4) 10.3 5.1 12.8
Adjusted operating profit 28.4 34.0 66.7
Amortisation (excluding amortisation of intangible assets arising on 0.9 0.8 1.7
acquisitions)
Adjusted EBITA 29.3 34.8 68.4
Depreciation 13.6 15.8 29.4
Adjusted EBITDA 42.9 50.6 97.8
Profit on sale of property, plant and equipment (0.1) (0.1) (0.2)
Right-of-use asset payments (4.5) (3.9) (5.3)
Pre-IFRS16 adjusted EBITDA 38.3 46.6 92.3
The Group presents its results on both a 'reported' and an 'adjusted' basis.
'Reported' results are the statutory figures required under IFRS, while
'adjusted' results exclude certain items to provide a more detailed
understanding of the Group's underlying performance. Certain measures are
reported on an annualised basis to show the preceding 12-month period where
seasonality can impact on the measure.
Pre-IFRS 16 net debt and pre-IFRS16 net debt leverage
Net debt comprises cash at bank and in hand, bank loans and leasing
liabilities. An analysis of net debt is provided in Note 15. Net debt on a
pre-IFRS 16 basis has been disclosed to provide additional information and to
align with reporting required for the Group's banking covenants. Pre-IFRS16
net debt leverage is defined as pre-IFRS16 net debt divided by adjusted
pre-IFRS16 EBITDA. Net debt as reported in Note 15 is reconciled to pre-IFRS
16 net debt and pre-IFRS 16 net debt leverage below:
Unaudited Unaudited Unaudited Audited year ended December 2024
six months ended June 2025
six months ended December 2024
12 months ended June 2025 £m
£'m £'m £'m
Net debt 191.9 169.3
IFRS 16 leases (40.3) (35.4)
Net debt on a pre-IFRS16 basis 151.6 133.9
Adjusted pre-IFRS16 EBITDA 38.3 45.7 84.0 92.3
Pre-IFRS16 net debt leverage 1.8 1.5
Return on capital employed ('ROCE')
ROCE is defined as adjusted EBITA divided by shareholders' funds plus net
debt.
Unaudited Unaudited Unaudited Audited year ended December 2024
six months ended June 2025
six months ended December 2024
12 months ended June 2025 £m
£'m £'m £'m
Adjusted EBITA 29.3 33.6 62.9 68.4
Shareholders' funds 670.5 661.3
Net debt 191.9 169.3
Capital employed 862.4 830.6
ROCE 7.3% 8.2%
Adjusted operating cash flow conversion
Adjusted operating cash flow conversion is the ratio of adjusted operating
cash flow to adjusted EBITDA (on an annualised basis) and is calculated as set
out below:
Unaudited Unaudited Unaudited Audited year ended December 2024
six months ended June 2025
six months ended December 2024
12 months ended June 2025 £m
£'m £'m £'m
Net cash flow from operating activities (3.7) 51.1 47.4 76.8
Adjusting items paid 7.6 3.0 10.6 6.4
Net financial expenses paid 6.3 6.9 13.2 11.7
Taxation paid 6.7 6.5 13.2 8.8
Adjusted operating cash flow 16.9 67.5 84.4 103.7
Adjusted EBITDA 42.9 47.2 90.1 97.8
Operating cash flow conversion 94% 106%
20. Principal risks and uncertainties
Risk management is the responsibility of the Marshalls plc Board and is a key
factor in the delivery of the Group's strategic objectives. The Board
establishes the culture of effective risk management and is responsible for
maintaining appropriate systems and controls. The Board sets the risk appetite
and determines the policies and procedures that are put in place to mitigate
exposure to risks. The Board plays a central role in the Group's Risk Review
process, which covers emerging risks and incorporates scenario planning and
detailed stress testing.
There continue to be external risks and significant volatility in UK and world
markets with an uncertain outlook. In an addition to the macro-economic
environment, the key risks for the Group are cyber security, competitor
activity and an increased focus in climate change and other ESG related
issues. In all these cases, specific assessments continue to be reviewed,
certain new operating procedures have been implemented and mitigating controls
continue to be reviewed as appropriate. A summary of these risks is set out
below.
· Macro-economic uncertainty - The Group's performance is dependent on activity
in its end markets, particularly UK residential construction and RMI, and is
therefore susceptible to economic downturns, changes in government policy, and
interest rates. Uncertainty persists regarding the pace of interest rate
changes and the timing of new government-led investment and the Board sees no
obvious catalyst for a recovery in volumes. The Group's primary mitigation has
been the execution of its diversification strategy, with the strong
performances in Roofing and Building Products providing resilience against the
challenges in Landscaping Products. This has been supported by decisive cost
control actions, including the optimisation of our manufacturing network, and
disciplined working capital management to maintain flexibility and prepare for
market recovery.
· Cyber security - A significant cyber security attack remains a principal risk,
with the potential to cause operational disruption and financial loss. The
external threat landscape has continued to evolve in the first half of 2025,
with a notable increase in the sophistication of potential attacks. In
response, our focus during the period has been on the continued alignment of
cyber security controls across the entire Group, particularly within the
Marley business. This is supported by our ongoing programme of enhanced
employee training, regular third-party vulnerability testing, and the
maintenance of a comprehensive cyber insurance policy.
· Competitor activity - It has been challenging to recover input cost inflation
through higher selling prices due to weaker demand levels resulting in
heightened competition for volumes in the marketplace and not all input costs
were covered by price increases in the first half of 2025. In order to
partially mitigate, the Group is focusing on controlling its cost base and
reducing capacity (with a particular focus on Landscaping Products) whilst
continuing to focus on the attributes that are important to our customers,
including best in class technical and design support, carbon leadership and
our leading brands.
· Climate change and other ESG issues - The Group is exposed to the transition
risks of climate change, alongside the increasing commercial and reputational
risks associated with evolving stakeholder and regulatory ESG expectations.
During the first half, the focus on ESG has continued to intensify, with UK
government announcements on the Future Homes Standard and long-term social
housing investment creating both significant opportunities and a sharper focus
on the sustainability credentials of building materials. Our mitigation is to
align our 'Transform & Grow' strategy directly with these trends. In H1,
this was demonstrated by the strong growth of Viridian Solar and our focus on
lower-carbon brick offerings. This is all underpinned by the governance of our
ESG Board Committee.
The other principal risks and uncertainties that could impact the business for
the remainder of the current financial year are those set out in the 2024
Annual Report and Accounts on pages 57 to 64. These cover the strategic,
financial and operational risks and have not changed significantly during the
period. Strategic risks include those relating to the ongoing Government
policy, general economic conditions, the actions of customers, suppliers and
competitors, and weather conditions. The Group also continues to be subject to
various financial risks in relation to the pension scheme, principally the
volatility of the discount (AA corporate bond) rate, any downturn in the
performance of equities and increases in the longevity of members. The other
main financial risks arising from the Group's financial instruments are
liquidity risk, interest rate risk, credit risk and foreign currency risk.
External operational risks include the cyber security and information
technology, the effect of legislation or other regulatory actions and new
business strategies.
The Group continues to monitor all these risks and pursue policies that take
account of, and mitigate, the risks where possible.
Responsibility Statement
The following statement is given by each of the directors, namely Vanda Murray
OBE, Chair; Simon Bourne, Chief Commercial Officer; Angela Bromfield,
Non-executive Director; Matt Pullen, Chief Executive; Avis Darzins,
Non-Executive Director; Diana Houghton, Non-executive Director; Justin
Lockwood, Chief Financial Officer; and Graham Prothero, Senior Non-executive
Director.
The Directors confirm to the best of their knowledge:
· The Condensed Consolidated Half Year Financial Statements have been prepared
in accordance with IAS 34 "Interim Financial Reporting" as contained in UK
adopted IFRS, give a true and fair view of the assets, liabilities, financial
position and profit and loss account of the issuer as required by DTR 4.2.4R
· The Half Year Report includes a fair review of the information required under
DTR 4.2.7R (indication of important events during the six months and
description of the principal risks and uncertainties for the remaining six
months of the year); and
· The Half Year Report includes a fair review of the information required by DTR
4.2.8 (disclosure related parties' transactions and changes therein).
Board members
As at 30 June 2025, the Group's Board members were as follows:
Vanda Murray OBE Chair
Simon Bourne Chief Commercial Officer
Angela Bromfield Non-Executive Director
Matt Pullen Chief Executive
Avis Darzins Non-Executive Director
Diana Houghton Non-Executive Director
Justin Lockwood Chief Financial Officer
Graham Prothero Senior Non-Executive Director
The responsibilities of the Directors during their period of service were as
set out on page 111 of the 2024 Annual Report.
By order of the Board
Shiv Sibal
Group Company Secretary
11 August 2025
INDEPENDENT REVIEW REPORT TO MARSHALLS PLC
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the condensed consolidated income statement, the
condensed consolidated statement of comprehensive income, the condensed
consolidated balance sheet, the condensed consolidated statement of changes in
equity, the condensed consolidated cash flow statement and related notes 1 to
20.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in Note 1, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted international accounting
standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, "Interim Financial
Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the Group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
11 August 2025
Shareholder Information
Financial calendar
Interim dividend for the year ending December 2025 Payable 1 December 2025
Results for the year ending December 2025 Announcement March 2026
Report and accounts for the year ending December 2025 April 2026
Annual General Meeting May 2026
Registrars
All administrative enquiries relating to shareholdings should, in the first
instance, be directed to Computershare Investor Services PLC, PO Box 82, The
Pavilions, Bridgwater Road, Bristol BS99 6ZZ (telephone: 0870 707 1134) and
should clearly state the registered shareholder's name and address.
Dividend mandate
Any shareholder wishing dividends to be paid directly into a bank or building
society should contact the Registrars for a dividend mandate form. Dividends
paid in this way will be paid through the Bankers' Automated Clearing System
("BACS").
Website
The Group has a website that gives information on the Group and its products
and provides details of significant Group announcements. The address is
www.marshalls.co.uk (http://www.marshalls.co.uk) .
Cautionary Statement
This Half Year Financial Report contains certain forward-looking statements
with respect to the financial condition, results, operations and business of
Marshalls plc. These statements and forecasts involve risk and uncertainty
because they relate to events and depend upon circumstances that will occur in
the future. There are a number of factors that could cause actual results or
developments to differ materially from those expressed or implied by these
forward-looking statements and forecasts.
Directors' Liability
Neither the Company nor the Directors accept any liability to any person in
relation to the contents of this Half Year Financial Report except to the
extent that such liability arises under English law. Accordingly, any
liability to a person who has demonstrated reliance on any untrue or
misleading statement or omission shall be determined in accordance with
section 90A of the Financial Services and Market Act 2020.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR PPMRTMTTMBLARecent news on Marshalls
See all newsREG - Marshalls PLC - Director/PDMR Shareholding
AnnouncementREG - Marshalls PLC - Director/PDMR Shareholding
AnnouncementREG - Marshalls PLC - Half year results
AnnouncementREG - Marshalls PLC - Directorate Change
AnnouncementREG - Marshalls PLC Jupiter Fund Mgmt - Holding(s) in Company
Announcement