Marshalls Reports Profit Growth on Cost Cuts, No Market Recovery Expected in 2026
Marshalls' Financial Performance and Market Outlook
Aug 10 (Reuters) - British landscaping and roofing products supplier Marshalls reported a 13.2% rise in first-half adjusted pretax profit, helped by tight cost controls, but said it does not expect any material market recovery this year.
Key Details from Marshalls' Report
Here are some more details:
Cost Control Measures and Operational Adjustments
• As Britain grapples with contracting residential and commercial construction due to rising inflation and a surge in raw material prices, Marshalls has been exiting unprofitable operations and right-sizing manufacturing capacity to shore up profits.
Executive Commentary on Cost Inflation
• "We have also responded to cost inflation in a disciplined way, using targeted commercial actions, close customer engagement and cost control against a backdrop of external volatility," Chief Executive Simon Bourne said in a statement.
Financial Results for the First Half
• For the first-half ended June 30, the company's adjusted pre-tax profit rose 13.2% to £24.9 million ($33.60 million), particularly helped by recovery at its Landscaping Products unit, which had been pressured by falling demand for maintenance work as well as a rise in competition.
Outlook and Market Expectations
• The supplier of products for residential, commercial and public spaces reaffirmed its full-year and medium-term targets. According to company-compiled consensus estimates, Marshalls is expected to report a full-year pretax profit of £49.4 million.
• The company said it expects market conditions to remain subdued with no material recovery in end-market demand during 2026.
Stock Performance and Additional Information
• Marshalls' shares were down 2.6% in early trading.
($1 = £0.7411)
(Reporting by Neeshita Beura in Bengaluru; Editing by Ronojoy Mazumdar)
