Marshalls (MSLH) Trading Update summary

Trading performance and market conditions

• Revenue grew 4% year-on-year in H1 2025 to £319 million, with Roofing Products up 11% to £98 million and Building Products up 5% to £86 million, while Landscaping Products declined 1% to £135 million but improved over the prior period.

• Viridian Solar delivered 50% growth, and Water Management and Mortars performed strongly.

• Activity levels slowed since late May, with no improvement in market activity expected for the rest of 2025.

• Profitability was impacted by market headwinds, less profitable product mix, and targeted price investments.

• Medium-to-long-term structural drivers remain favorable, but near-term demand is subdued due to macroeconomic uncertainty.

Profitability outlook and guidance

• Full-year adjusted profit before tax is now expected between £42 million and £46 million, with profit expectations reduced due to weaker-than-expected demand and pricing pressure, especially in Landscaping.

• Landscaping is expected to be around break-even for the year, with profitability hit by weak end markets, overcapacity, and a shift to lower-margin products.

• Building Products profit expectations are slightly lower than previous guidance but not below prior year levels.

• About half the profit reduction is due to lower volumes and mix, with the rest split between price and manufacturing efficiency.

• Further cost actions are planned to improve profitability, especially in Landscaping.

Strategic actions and cost management

• Accelerated self-help measures in Landscaping include network optimization, cost base reduction, and operational efficiency, targeting £9 million annualized savings.

• Partial site closure in H1 will deliver annualized savings of about £3 million, with further actions in H2 to reach the £9 million target.

• An unprofitable product range will be restructured or discontinued, expected to add £2.5 million profit in 2026.

• Portfolio simplification is underway, with a 28% SKU reduction planned.

• Salary inflation and regulatory changes added £3 million to costs, but overall input cost inflation is neutral.