Marshalls (MSLH) investor relations material

Executive summary

• Revenue grew 2% year-over-year to £632m, driven by the 'Transform & Grow' strategy and strategic continuity, despite subdued markets.

• Roofing Products improved profitability, Building Products contributed solidly, but Landscaping underperformed and was breakeven.

• Robust balance sheet maintained with strong cash conversion and disciplined working capital management.

• Transform & Grow strategy progressing, focusing on delivery, profitability, and financial resilience.

• Sharper execution to deliver on medium-term targets set in November 2024.

Financial highlights

• Revenue up 2% year-over-year to £632m; adjusted operating profit down 15% to £56.4m.

• Adjusted profit before tax and EPS both declined 16% to £43.7m and 13.4p per share, respectively.

• Full-year dividend reduced 16% to 6.7p per share.

• Adjusting items totaled £26.0m, including amortisation, restructuring, transformation costs, and loan refinancing.

• Net debt increased to £137.9m, with cash conversion at 88%.

Outlook and guidance

• Fundamentals remain solid with unique market proposition and competitive advantages.

• Commitment to medium-term targets: 15% operating margin, 90% cash conversion, 15% ROCE.

• 2026 will focus on delivery, with cost savings and margin improvements expected.

• Roofing margins expected to be 20%-24% medium term; Landscaping targets 12% operating margin with 15%-20% volume recovery.

• CapEx for 2026 expected at the lower end of £20m-£30m range.