Why did Marshalls cut its annual dividend?

Marshalls reduced its annual dividend by 16% due to subdued demand and overcapacity in its landscaping unit, which led to falling profits.

How much did Marshalls' adjusted pre-tax profit fall?

Marshalls' adjusted pre-tax profit fell by 16% to 43.7 million pounds in 2025.

What cost-saving measures is Marshalls implementing?

Marshalls exited unprofitable operations, right-sized manufacturing capacity, and left UK quarried natural stone processing, expecting 11 million pounds in annual savings by end-2026.

How is the broader market environment affecting Marshalls?

Marshalls is impacted by affordability pressures in the UK housing sector, the worst construction market downturn since the financial crisis, and uncertainty from the Middle East conflict.

What are Marshalls' expectations for profitability growth?

Despite recent challenges, Marshalls is maintaining its 2026 profitability growth expectations.

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Finance

UK's marshalls slashes dividend as weakness in landscaping unit drags annual profit

Published by Global Banking & Finance Review®

Posted on March 16, 2026

2 min read

Last updated: March 16, 2026

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Quick Summary

Marshalls cut its full-year dividend by about 16% to 6.7p amid a 16% fall in adjusted pre-tax profit to £43.7m, as weakness in its Landscaping Products division prompted cost-saving actions, although the company maintains its 2026 profitability growth outlook.

Marshalls Reduces Dividend Amid Landscaping Unit Weakness and Profit Drop

Marshalls' Financial Performance and Strategic Response

March 16 (Reuters) - Landscaping and roofing products supplier Marshalls on Monday cut its annual dividend by 16% and detailed cost-saving measures after subdued demand and industry overcapacity sent annual profits tumbling.

Profitability Challenges and Operational Adjustments

The British firm, which supplies products for residential, commercial and public spaces, has exited unprofitable operations and right-sized its manufacturing capacity as part of its efforts to restore profitability.

Future Profitability Outlook

Marshalls, however, maintained its 2026 profitability growth expectations despite uncertainty about how the Middle East conflict might affect consumer sentiment and supply costs.

Key Financial Highlights

Dividend Reduction

• Proposed full-year dividend of 6.7 pence per share, down from 8.0 pence in 2024

Profit Decline

• Adjusted pre-tax profit fell 16% to 43.7 million pounds in 2025 amid affordability pressures in UK housing sector and the construction market's worst downturn since the global financial crisis

Cost-Saving Initiatives

Operational Exits and Savings

• Cost reduction programme, including exit from UK quarried natural stone processing, expected to deliver 11 million pounds annualised savings by end-2026

Market Activity Trends

• Market activity in early 2026 remained consistent with late 2025, though affected by persistent rainfall

Capital Reallocation

• Company reallocating capital from slower-growth activities to business units best positioned to deliver earnings growth

(Reporting by Raechel Thankam Job and Neeshita Beura in Bengaluru; Editing by Nivedita Bhattacharjee)