Marshalls, the concrete-products company, has confirmed its full-year profit guidance after reporting results in line with expectations for the last quarter of 2023.
During this period, revenue declined to £671 million ($850.6 million) compared to £719 million in 2022. The decrease was attributed to lower demand from house builders and ongoing subdued activity in private housing and construction.
However, Marshalls still expects its full-year adjusted pretax profit to be in line with market expectations. Analysts polled by FactSet predict an adjusted pretax profit of £52.5 million.
Throughout the year, the company implemented measures to streamline its business, including reducing capacity and costs. This involved the closure and mothballing of factories, resulting in anticipated savings of around £11 million, which is £2 million higher than previously estimated.
Marshalls also saw a reduction in net debt from £191 million to £173 million.
Despite the current challenges, Marshalls remains confident that long-term market growth drivers will lead to a significant improvement in profitability when the markets recover.
“The board is encouraged by the recent positive inflation trends and the subsequent impact on interest-rate expectations,” the company stated.
For more information, contact Christian Moess Laursen.
