Building products supplier, Marshalls revealed a mixed performance amid ongoing market challenges, with shares plunging by nearly 25 per cent in response to the firm’s weaker outlook.
In its trading update for the six months to 30 June 2025, the company reported a 3.9 per cent year-on-year increase in revenue to £319 million, up from £307 million in 2024.
However, volume growth was offset by weaker pricing and product mix, signalling a tough trading environment.
The firm noted that activity levels in key markets softened from the end of May, with no immediate driver for improvement expected through the remainder of 2025.
Despite the pressure on its landscaping division – down from £137 million to £135 million – the company reported positive five per cent growth in its building and roofing products segments up to £98 million from £88 million.
This included a strong performance from Viridian Solar which saw 50 per cent revenue growth.
As a result, Marshalls has revised its full-year guidance and now expects adjusted pre-tax profit to be between £42 million and £46 million, down from £52.2 million in 2024.
It ended the period with pre-IFRS16 net debt of £152 million (HY1 2024: £156 million), but retains strong liquidity with £145 million undrawn on its revolving credit facility.
The update contributed to Marshalls becoming one of the biggest losers on the FTSE 250, with shares plunging 24.2 per cent to 200 pence from 264 pence.
In response to the market conditions, Marshalls is focused on optimising its manufacturing footprint and reducing costs, with plans to improve profitability in 2026.
Matt Pullen, chief executive, said: “We remain focused on executing the performance improvement plan in this segment, however, the softening of demand, a weaker product mix and targeted price investment have reduced our group profit expectations for 2025.
“We remain focused on executing our ‘Transform & Grow’ strategy and are well positioned to respond swiftly to improving activity levels when our key end markets recover.”
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