REG - Marshalls PLC - Trading Statement

MarshallsAnnouncement

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RNS Number : 3124P  Marshalls PLC  19 January 2026

19 January 2026

 

 

Marshalls plc

('Marshalls' or the 'Group')

 

Full Year Trading Update and Notice of Results

2025 result in-line with expectations

 

Marshalls, a leading manufacturer of sustainable solutions for the built
environment, provides the following trading update for the year ended 31
December 2025.

 

Overview

 á                     2025 adjusted profit before tax in-line with market expectations(1)
 á                     Group revenue of £632 million for the year, representing year-on-year growth
                       of two per cent and in-line with trends reported in the November Trading
                       Update
 á                     Good strategic progress against the 'Transform & Grow' strategy with
                       Landscaping Products improvement plan on track to deliver £11 million of
                       annualised cost savings
 á                     Balance sheet continues to be robust, with pre-IFRS16 net debt of £138
                       million
 á                     Despite an uncertain end market outlook, further progress is expected to be
                       made in 2026
 á                     Appointment of Simon Bourne as Chief Executive Officer

 

Divisional trading performance

 

 Revenue growth versus 2024  H1 2025  H2 2025  FY2025
 Landscaping Products        -1%      -1%      -1%
 Building Products           +6%      +3%      +4%
 Roofing Products            +11%     -2%      +4%
 Group                       +4%      0%       +2%

 

Landscaping Products' revenue was £266 million (2024: £268 million), which
is a reduction of one per cent compared to 2024. This comprised volume growth
of four per cent in a subdued market, offset by price investment of one per
cent and a mix impact of four per cent.  The impact of each factor moderated
slightly in the second half of the year.

 

Building Products' revenue was £172 million (2024: £165 million), which
represents an increase of four per cent. Revenue growth moderated to three per
cent in the second half of the year as the strong growth in Water Management
was partially offset by a further softening in Bricks.

 

Roofing Products' revenue was £194 million (2024: £186 million), which is an
increase of four per cent, driven by growth of c.32 per cent in Viridian
Solar, partially offset by a reduction in Marley. Viridian Solar delivered
sequential half-on-half revenue growth during 2025.  As expected,
year-on-year revenue growth moderated to c.18% in H2 as the implementation of
the Part L energy efficiency regulations matured resulting in tougher
comparatives.  Lower market activity levels and relatively strong comparators
resulted in Marley revenues contracting in the second half.

 

Landscaping Products improvement plan

Encouraging progress was made on the Landscaping Products improvement plan
resulting in volume and market share growth. The network optimisation and
self-help actions taken in 2025, including exiting UK quarried natural stone
processing, were concluded as planned in the second half of the year.  These
actions are expected to deliver total annualised savings of around £11
million, of which around £3 million were realised in 2025.

 

Balance sheet and liquidity

The Group's balance sheet continues to be robust, with pre-IFRS16 net debt of
£138 million at the year-end (December 2024: £134 million).  The Group has
significant liquidity to fund its strategic and operational growth plans with
£125 million of headroom at the year-end on its recently refinanced
syndicated bank facility.

 

Outlook

The Group expects to report full year adjusted profit before tax in-line with
market expectations(1) despite subdued end markets and the impact of prolonged
pre-Budget uncertainty during the second half.  The outlook for 2026
continues to be uncertain and accordingly, the Board remains focused on
operational improvements through its 'Transform & Grow' strategy.  While
the Group is not anticipating a significant improvement in market activity
levels during the next 12 months, the actions taken to reduce the cost base
during 2025 give the Board confidence that the Group will deliver an improved
financial performance in 2026.

 

Notice of Results

The Group will announce its results for the year ended 31 December 2025 on 16
March 2026.

 

Simon Bourne, Chief Executive Officer, commented:

 

"Marshalls delivered a resilient performance, evidenced by a return to revenue
growth despite the challenging market backdrop, and delivering profits in-line
with the market's expectations. We have made good progress with our 'Transform
& Grow' strategy and with an increased focus on execution, I am confident
that the Group is well positioned to benefit from a market recovery and
structural growth drivers over the medium term."

 

(1) Company compiled consensus for adjusted profit before tax is £43.6
million with a range of £42.0 million to £44.4 million.

 

Enquiries:

 

   Marshalls plc
   Simon Bourne, Chief Executive Officer       01422 314777

   Justin Lockwood, Chief Financial Officer

   Sodali & Co (Financial PR)
   James White                                 07855 432699 / 07935 351934

   Pete Lambie                                  Marshalls@client.sodali.com

   Tilly Abraham

 

Note to the Editor:

 

About Marshalls plc:

 

Established in the late 1880s, Marshalls plc is a leading UK manufacturer of
sustainable solutions for the built environment. It operates through three
trading divisions: Landscaping; Building; and Roofing. At a Group, divisional
and brand level, Marshalls' strategy centres around its customers who value
its unique set of capabilities, namely leading brands, best in class technical
and design support and carbon leadership. This is underpinned by business wide
enterprise excellence, leadership in ESG governance and standards and its
people, organisation, and culture.  

 

The Group operates a national network of manufacturing and distribution sites.
Marshalls is committed to quality in everything it does, including the
achievement of high environmental and ethical standards and continual
improvement in health and safety performance. Its strategic goal is to become
the UK's leading manufacturer of sustainable solutions and products for the
built environment. 

 

Forward-Looking Statements:

 

Any statements in this release, to the extent that they are forward-looking,
are subject to risk factors associated with, amongst other things, the
economic and business circumstances occurring from time to time in the markets
in which Marshalls operates. It is believed that the expectations reflected in
these statements are reasonable, but they may be affected by a wide range of
variables, which could cause actual results to differ materially from those
currently anticipated.  More information about the factors that may affect
Marshalls' performance is contained in the Annual Report to shareholders for
the year ended 31 December 2024.

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