Marshalls (MSLH) H1 2026 earnings summary

Executive summary

• Revenue was broadly flat year-on-year at £380 million or £317.8 million, reflecting subdued end-market activity, while operating profit rose 8.1% to £30.7 million, driven by improved performance in Landscaping Products and self-help actions.

• Profit before tax increased 13.2% to £24.9 million, and EPS grew 14.4% to 7.6p, benefiting from lower finance costs and a reduced effective tax rate.

• Interim dividend increased by 14% to 2.5p per share, reflecting strong cash generation and adherence to dividend policy.

• Net debt reduced by £15 million year-on-year to £136.8 million, with leverage at 1.7x adjusted EBITDA, supported by robust cash conversion and disciplined capital management.

• Portfolio diversification and disciplined execution provided resilience against subdued market conditions.

Financial highlights

• Revenue held steady at £380 million or £317.8 million, with adjusted operating profit up 8.1% to £30.7 million, mainly from a £5 million improvement in Landscaping.

• Adjusted EBITDA was £44.0 million, with annualised operating cash conversion of 98%.

• Adjusting items totaled £5.2 million, relating to non-cash amortization of acquisition intangibles.

• Interim dividend up 13.6% to 2.5p per share, maintaining two times cover of adjusted earnings.

• Net debt at £136.8 million, £14.8 million lower year-over-year, with leverage at 1.7x adjusted EBITDA.

Outlook and guidance

• Full-year profitability expectations are unchanged, with confidence in delivering targets based on controllable self-help actions and cost discipline rather than market recovery.

• Medium-term strategy targets doubling operating profit, with 55% of uplift from self-help and structural growth, and the remainder from cyclical recovery.

• No material market recovery is assumed for the second half; focus remains on execution, cost, cash, and capital discipline.

• £11 million annualised cost savings in Landscaping on track for delivery by year-end.