Marshalls’ shares fell after the building materials supplier downgraded its forecast for 2024, as it saw a slump in profits and revenue for the year.
The paving stone specialist’s revenue for 2023 was down 7 per cent on the year to £671.2million, it reported, whilst its adjusted profit before tax was down 41 per cent to £53.3million.
Following the trading update, Marshalls shares were down 8.47 per cent to 266p in afternoon trading on Monday.
The paving stone specialist’s revenue for 2023 was down 7% to £671.2million, whilst its adjusted profit before tax was down 41% to £53.3million
In a statement, the firm said that ‘revenue in the first two months of the year was lower than 2023 and reflects the continued weakness seen in the second half of last year’.
As a result the group said that revenues in 2024 will be lower than previously expected and that profit will now be at a similar level to 2023.
Marshalls also cut its final dividend to 5.7p, a fall of 42 per cent. This meant that over 2023 as a whole, the dividend fell by 47 per cent from 15.6p to 8.3p per share.
Matt Pullen, chief executive of Marshalls, said: ‘During 2023, the business was necessarily focused on controlling and improving the efficiency and agility of its cost base, leveraging its strength in operations, as well as rigorous and strong management of cashflow.
‘In the short-term markets are expected to remain challenging with continued weakness in the first half of the year followed by a progressive recovery in the second half as the macro-economic environment improves.
‘This recovery is however expected to be slower and more modest than previously anticipated.’
In August, Marshalls slashed around 250 jobs in the first half as its profits were rocked by a slowdown in the property market.
The firm’s adjusted profit before tax was down by 26 per cent to £33.2million year-to-year for the six months to 30 June.
The company said at the time that job cuts were necessary after ‘challenging’ market conditions ‘led to a material reduction in volumes across all three of our reporting segments’.
Marshalls, which benefited from homeowners upgrading their gardens and driveways during the pandemic, said it had seen a ‘marked’ softening in demand during some months in 2022.
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