Marshalls, a renowned building supplies company, reported a significant 13 per cent drop in revenues for the first half of 2024.
- The company’s revenue fell to £306.7 million compared to £354.1 million within the same timeframe the previous year.
- Despite weakened markets, Marshalls maintains resilience by controlling costs and strengthening its balance sheet through debt reductions.
- The firm’s core landscaping products underperformed, prompting swift operational changes.
- CEO Matt Pullen remains optimistic, citing diversification strategies and government housing commitments as positive influences.
Marshalls, a key player in the building supplies sector, has announced a notable 13 per cent decline in its revenues for the first half of 2024. The company’s revenue dipped to £306.7 million, down from £354.1 million achieved during the same period in 2023. Despite this significant drop, Marshalls succeeded in generating a pre-tax profit of £26.6 million, though this reflects a 20 per cent reduction from the prior year.
In a statement reflecting its outlook, Marshalls described its performance in weakened market conditions as ‘resilient’. The company credited its finance team for effectively managing costs and working capital. Furthermore, Marshalls fortified its financial position by reducing net debt from £184.6 million to £155.8 million.
The company acknowledged that its traditional focus on landscaping products did not yield the expected results, necessitating prompt adjustments in their operations, which the firm claims are being ‘implemented at pace.’
Marshalls’ Chief Executive, Matt Pullen, expressed encouragement about the company’s interim results. He stated that the diversification strategy, which includes acquisitions and enhancements in less cyclical business areas, has allowed for a more balanced corporate structure. Pullen remains positive about future prospects, bolstered by a new governmental commitment to expand housing projects.
Pullen’s optimism extends to the second half of the year. He anticipates a modest improvement in the company’s end markets, contingent on a progressive recovery in the macroeconomic environment.
The strategic adaptations by Marshalls aim to counteract revenue declines amidst challenging market conditions.
