Table of Contents
- The paving slab specialist’s 2023 turnover fell 7% to £671.2 million for the year
- Adjusted profit before tax fell 41% to £53.3m
- Marshalls also cut its final dividend to 5.7p, a drop of 42 per cent.
<!–
<!–
<!– <!–
<!–
<!–
<!–
Shares of Marshalls fell after the building materials supplier cut its 2024 forecast as it saw lower profits and revenue for the year.
The paving specialist’s turnover for 2023 was down 7 per cent on the year at £671.2 million, it said, while its adjusted profit before tax was down 41 per cent at £53.3 million.
Following the commercial update, Marshalls Stocks were down 8.47 percent at 266p on Monday afternoon.
The paving specialist’s turnover for 2023 fell 7% to £671.2 million, while its adjusted profit before tax fell 41% to £53.3 million.
In a statement, the company said “revenue for the first two months of the year was lower than 2023 and reflects continued weakness seen in the second half of last year.”
As a result, the group said revenue in 2024 will be lower than initially forecast and profit will now be at a similar level to 2023.
Marshalls also cut its final dividend to 5.7p, a drop of 42 per cent. This means that over the whole of 2023, the dividend fell by 47%, from 15.6p to 8.3p per share.
Matt Pullen, Managing Director of Marshalls, said: “During 2023, the business has necessarily focused on controlling and improving the efficiency and agility of its cost base, leveraging of its operational strength, as well as rigorous and solid cash flow management.
“In the near term, markets are expected to remain challenging, with continued weakness in the first half, followed by a gradual recovery in the second half as the macroeconomic environment improves.
“This recovery should, however, be slower and more modest than expected.”
In August, Marshalls cut about 250 jobs in the first half as its profits were hit by the slowdown in the housing market.
The company’s adjusted pre-tax profit fell 26 per cent to £33.2 million year-on-year for the six months ended June 30.
The company said at the time that job cuts were necessary after “challenging” market conditions “resulted in a significant reduction in volumes across our three reporting segments.”
Marshalls, which has benefited from homeowners’ gardens and driveways improving during the pandemic, said it had seen a “marked” slowdown in demand in some months of 2022.
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investment and ready-to-use portfolios
Hargreaves-Lansdown
Hargreaves-Lansdown
Free Fund Trading and Investing Ideas
interactive investor
interactive investor
Lump sum investment from £4.99 per month
eToro
eToro
Equity investment: more than 30 million communities
Best Invest
Best Invest
Free financial coaching
Affiliate links: If you subscribe to a product This is Money may earn a commission. These offers are selected by our editorial team because we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investment account for you