Marshalls Share Discussion Threads

[my retirement fund] 17/10/2023 13:21

Jeez below 200p. So this is where I wish I was an accountantThe market is telling me, though, Marshall is going to need fundraising! The sickening thought then, if so? how long will it take the management to come clean and how much equity destruction during that time. Not looking good here is it?

[essentialinvestor] 16/10/2023 13:22

12 month (and multi year) low sliced through like butter.

[essentialinvestor] 12/10/2023 13:16

Dave, yes - hence the interest!.

[bigbigdave] 12/10/2023 09:55

Money to be made here long term, Construction will recover.......some time.

[essentialinvestor] 12/10/2023 09:35

I'm mainly focusing on investment trusts ATM as holding smaller individual companies
carries extra risk given macro weakness.

[my retirement fund] 12/10/2023 09:06

Yes, mostly bricks creating the immediate pain. You would thinks paving would lag, no? Paving is usually the last thing to go down on develops long after the structures have been completed.

[essentialinvestor] 11/10/2023 17:40

FORT, while not a direct comparison warned on business conditions today.

[my retirement fund] 11/10/2023 17:36

Shocking price performance. Presumably, there is much more to go.

[essentialinvestor] 11/10/2023 17:29

Another FY guidance reduction on the way?.

[essentialinvestor] 06/10/2023 19:49

Nearing a 12 month and 8 year share price low.

[essentialinvestor] 19/9/2023 22:21

A key is whether they need to shore up the balance sheet with an equity raise to navigate the next year or so (I'm not suggesting that will be needed) - If that's not needed the shares may offer some nice longer term upside, but gut call is it's too soon to buy now.

[waldron] 16/8/2023 08:08

Outlook


-- 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 s tart 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


Commenting on the results, Martyn Coffey, Chief Executive, said:

"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. We have responded by taking action to improve our agility, reduce capacity, take cost out of the business, and manage cash. Regrettably, these actions necessitated in a reduction of approximately 250 roles across the organisation. However, we have been careful to ensure that we have sufficient latent manufacturing capacity that will allow us to respond quickly when there is an improvement in market conditions.

Our refreshed strategy is underpinned by our strong market positions, established brands and focused investment plans to drive ongoing operational improvement. Notwithstanding short-term challenges, the Board remains confident that 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."

There will be a live presentation today at 09:00am at the offices of Peel Hunt for analysts and investors, which will also be webcast live. The presentation will be available for analysts and investors who are unable to view the webcast live and can be accessed on Marshalls' website at www.marshalls.co.uk . Users can register to access the webcast using the following link:



There will also be a telephone dial in facility available Tel: UK-Wide: [phone] and quote password "Marshalls HY Results" if prompted by the operator.

[waldron] 16/8/2023 08:06

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 07:06

Everything going in the wrong direction.

[lozzer69] 31/7/2023 13:44

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 12:09

Sold and bought APH

[volsung] 31/7/2023 11:36

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

[redistributingwealth] 31/7/2023 10:52

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 10:08

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 08:44

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 07:35

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

[lauders] 31/7/2023 07:16

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 07:13

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 07:11

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