Marshalls enjoys jump in earnings but warns of tough times ahead as inflation hits consumer confidence
- Marshalls saw its earnings rise in the six months to 30 June
- But the group is mindful of a tough economic backdrop and cost of living crisis
Landscaping materials business Marshalls saw its adjusted core earnings rise by 14 per cent to £64.2million in the six months to 30 June.
The London-listed group maintained its full year guidance, but warned that the tough economic backdrop would hit consumer confidence across its landscaping division.
Marshalls expects full year numbers to be in line with expectations as building products and its new Marley roofing acquisition offset slower trading in landscaping, which is exposed to discretionary spending.
Update: Marshalls saw its adjusted core earnings rise by 14 % to £64.2m in the six months to 30 June
On a pre-tax basis, the company’s profit fell to £24million, from £39million. Revenue jumped 17 per cent to £348.4million and the group hiked its interim dividend by 21 per cent to 5.7p a share.
A shortage of bricks helped lift revenues at the firm’s building products arm by 21 per cent to £95.9million. But in the firm’s landscaping business revenues slipped 1 per cent to £216.9million.
Marley, the roof tile company bought last April, generated £35.6million in revenues driven by the continuing boom in newbuild housing.
Marshalls’ shares fell today and were down 2.9 per cent or 13.20p to 442.00p this morning, having fallen over 40 per cent in the past year.
Martyn Coffey, the group’s chief executive, said: ‘Marshalls delivered a robust first half trading performance, demonstrating the strength of our business model and the benefits of greater diversification resulting from the transformational Marley deal completed in April 2022 and other acquisitions of recent years.
‘Looking forward, the Board acknowledges that the macro outlook is becoming less certain due to geopolitical events driving up inflation and adversely impacting consumer confidence.
‘Notwithstanding this, the Board’s expectations for the Group as a whole remain in line with market expectations for the full year, with the more positive backdrop within Marshalls Building Products and Marley expected to balance the continuation of tougher trading conditions in Marshalls Landscape Products, which has greater exposure to the discretionary element of private housing RMI.’