Marshalls H1 profit drops on weaker Landscaping margins despite revenue growth

Published 11/08/2025, 07:36
© Reuters.

Investing.com -- Marshalls plc’s adjusted profit before tax fell to £22 million in the first half of 2025 from £26.6 million a year earlier, as lower margins in its Landscaping Products division outweighed gains in Roofing and Building Products, the company reported on Monday.

Group revenue for the six months ended June 30 rose 4% to £319.5 million, driven by an 11% increase in Roofing Products sales to £97.4 million and a 6% rise in Building Products revenue to £86.2 million. 

Landscaping Products revenue slipped 1% to £135.4 million. Adjusted operating profit declined to £28.4 million from £34 million, with the adjusted operating margin narrowing to 8.9% from 11.1%.

Reported operating profit was £18.1 million, down from £28.2 million, and profit before tax dropped to £11.7 million from £21.2 million. 

Basic earnings per share fell to 3.5 pence from 6.4 pence, while adjusted earnings per share decreased to 6.6 pence from 8 pence.

Segment operating profit rose in Roofing Products to £24.8 million from £23.2 million and in Building Products to £6.9 million from £6.4 million, while Landscaping Products’ profit dropped to £0.3 million from £8.3 million due to pricing investment, a less profitable product mix, and manufacturing inefficiencies.

Pre-IFRS 16 net debt stood at £151.6 million, down £4.2 million from a year earlier, equal to 2 times adjusted annualised EBITDA. 

Operating cash flow conversion was 94%, and the interim dividend was set at 2.2 pence per share, unchanged from last year.

The UK-based manufacturer said it is accelerating manufacturing footprint optimisation and overhead reduction measures aimed at delivering £9 million in annualised cost savings by 2026, with about £3 million expected in 2025. 

Full-year guidance issued July 25 was maintained, with the company citing subdued demand and uncertainty in the macroeconomic environment.

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