Marshalls (MSLH) Trading Update summary

Trading performance and revenue

• Group revenue for the first nine months was £476 million, down from £528 million in 2023, reflecting resilient performance in weak markets.

• Q3 revenue declined 3% year-on-year, a significant improvement from the 12% like-for-like drop in H1.

• Roofing Products saw double-digit growth in Q3, led by a 70% increase in Viridian Solar, while Building Products revenue was flat and Landscape Products' contraction slowed.

• Landscape Products revenue fell 17% year-to-date, but the Q3 decline moderated to 13% as new house building and private housing RMI markets stabilized.

• Building Products revenue dropped 4% year-on-year, with Q3 performance offsetting growth in drainage and bricks by declines in mortars and aggregates.

Balance sheet and liquidity

• Pre-IFRS16 net debt reduced to £149 million at September 2024, £41 million lower than the prior year.

• Strong organic cash generation and disciplined cash management enabled a further £25 million term loan repayment in October.

• The £160 million revolving credit facility remained undrawn at period end.

Strategic initiatives and outlook

• Strategy review identified opportunities in sustainability-driven markets, including bricks, masonry, water management, and energy transition.

• Anticipates cyclical recovery in core landscape and roofing businesses, supported by government housebuilding commitments.

• Capital Markets Event scheduled for 19 November 2024 to outline medium-term growth opportunities.

• Full-year profit expected to be in line with previous expectations, with net debt modestly better than forecast.