Marshalls Share Discussion Threads

[waldron] 16/8/2023 07:06

Marshalls profit slumps 30%; 2024 outlook looks gloomy
Today at 08:00


(Alliance News) - Marshalls PLC on Wednesday lowered its interim dividend, as profit slumped by 30% amid a challenging trading environment.

In the six months ended June 30, Marshall reported revenue of GBP354.1 million, up from GBP348.4 million a year earlier.

It said that this includes the benefit of an additional four-month contribution from the acquisition of Marley Group PLC. Marshalls bought pitched roof system manufacturer Marley for GBP535 million in April 2022.

But, revenue growth was offset by the impact of the weaker macro-economic environment on market demand, it noted.

The West Yorkshire, England-based company makes landscape products such as paving stones, as well as building and roofing products. Higher interest rates reduce building construction and repair activity.

Pretax profit plummeted 30% to GBP16.7 million from GBP27.3 million.

"Market conditions in new house building and private housing RMI were challenging in the first half of the year, which led to a material reduction in volumes across all three of our reporting segments. This resulted in a significant decline in group profitability compared to the first half of 2022," Chief Executive Martyn Coffey explained.

Based on this, Marshalls lowered its interim dividend by 54% to 2.6 pence from 5.7p.

Looking ahead, Marshalls said the challenging trading environment is expected to persist in the second half of the year and into 2024.

"Against this backdrop, the board will continue to focus on actions to minimise cost, improve agility and control cash flows alongside ensuring that the business is well positioned to respond when the group's end markets start to recover. The board remains confident that these actions, together with the long-term market growth drivers and a focus on executing key strategic initiatives, will underpin a material improvement in profitability when market conditions normalise," Marshalls said.

In July, Marshalls had warned that it expects the second half of 2023 to be below its previous expectations, meaning that the full year will follow suit.

It had also announced plans to cut about 250 jobs. This adds to the 150 roles removed in the second half of last year and is expected to result in annualised savings of about GBP9 million, with 40% of this being realised in 2023.

By Sophie Rose, Alliance News reporter

Comments and questions to [e-mail]

[mortal1ty] 16/8/2023 06:06

Everything going in the wrong direction.

[lozzer69] 31/7/2023 12:44

266p at 1.45pm now down 3.7 pc so it seems to have clawed some of the earlier losses back.

[blackhorse23] 31/7/2023 11:09

Sold and bought APH

[volsung] 31/7/2023 10:36

Sold.
Profit warnings come in 3s don’t they?

[redistributingwealth] 31/7/2023 09:52

Building products manufacturer Marshalls tumbled as it warned on profits, said it will cut around 250 jobs and announced the closure of one of its factories as it pointed to high inflation, rising interest rates and weaker consumer confidence.

[porsche1945] 31/7/2023 09:08

Management took on too much debt at the wrong moment, same as builders did in the run up to 2008 housing crash. Anything property related is a screaming short, builders, materials, agents, they’re toast, housing downturns are long cycles and this one only just getting going, brexit basket case U.K. sucking in inflation with a weak currency, terrible politics and parabolic interest rates, it writes itself. U.K. will be in hardcore recession 4th quarter so I’d be buying in the money puts on all this with expiry next summer.

[salpara111] 31/7/2023 07:44

As someone who invested here in the past and made decent money, I don't think that management can be blamed for macroeconomic issues that are beyond their control. The acquisition timing was unfortunate.
I keep them on my watchlist for the future but I would imagine it will be next year before we see a turn here.

[mortal1ty] 31/7/2023 06:35

Business must be nearly breaching covenants. 220m net-debt. Rescue rights issue time?

[lauders] 31/7/2023 06:16

How MSLH have fallen! From one of my best performers to one of the worst. Good thing the dividends have helped along the way, but the news never seems to get better here these days.

[adrian j boris] 31/7/2023 06:13

Outlook

The Board remains confident that the Group is well placed to deliver profitable long-term growth when market conditions improve and continues to focus on executing its key strategic initiatives.

Whilst previously anticipating a recovery in market conditions in the second half of the year, the Board is now of the view that an improvement in the second half performance is unlikely given the macro-economic backdrop. In addition, the Board has chosen to reduce production volumes with a negative impact on operational efficiency in order to manage working capital. Taking these factors together, and in the absence of a recovery in demand in the Group's end markets, the Board believes that the result in the second half will be markedly weaker than the first half, and consequently expects to deliver a result for the full year that is lower than its previous expectations.

[adrian j boris] 31/7/2023 06:11

16/08/2023 Q2 2023 Earnings Release (Projected)

[bigbigdave] 31/7/2023 06:08

Profit warning

[waldron] 12/7/2023 15:15

Could Marshalls holders be reinvesting the recent divi payment

[waldron] 12/7/2023 15:13

Updated Wed, Jul 12 2023

10:34 AM EDT

European markets surge as U.S. inflation cools by more than expected
Elliot Smith

This is CNBC’s live blog covering European markets.


LONDON — European markets surged on Wednesday afternoon as investors reacted to a cooler-than-expected U.S. inflation reading, which could have significant bearing on the Federal Reserve’s interest rate path.

[pugugly] 12/7/2023 15:06

Whole market up - Illogical?

[waldron] 12/7/2023 15:01

Cboe Europe - 16:58:52 12/07/2023


259.20 GBX +7.11%

[lozzer69] 12/7/2023 14:54

Up 7 pc today at 4pm not sure why but it makes a nice change.

[its the oxman] 30/6/2023 21:02

Feel more like this could struggle untill interest rates turn lower. And next newsflow might not be too pretty.

[waldron] 30/6/2023 06:24

Next dividend


Type Final

Per share 9.9p

Declaration date 15 Mar 2023 (Wed)

Ex-div date 01 Jun 2023 (Thu)

Pay date 03 Jul 2023 (Mon)

HOPE DIVI PAY INVOKES A TREND UP

[lauders] 30/6/2023 01:57

Looks good. Just wish the share price was healthier. MSLH has dropped so much since the latter part of 2021 when it was over 800p.

[waldron] 28/6/2023 07:36

Upcoming events on Marshalls plc


16/08/2023 Q2 2023 Earnings Release (Projected)

[waldron] 28/6/2023 07:35

Has bounced nicely off support

Heres to a trend up as seems massively undervalued

Good luck holders




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