Company posts 4% revenue growth in H1 2025, profitability pressured by market headwinds
LONDON: Marshalls plc, a leading manufacturer of sustainable solutions for the built environment, reported a 4% increase in group revenue to £319.5 million for the half year ended June 30, 2025, up from £306.7 million in the same period last year. The company cited strong performances in its Roofing and Building Products divisions, offset by profitability challenges in Landscaping Products.
Adjusted operating profit fell 16% to £28.4 million, while adjusted EBITDA declined 15% to £42.9 million. Adjusted profit before tax dropped 17% to £22.0 million. Basic earnings per share (EPS) decreased to 6.6 pence from 7.9 pence, and the interim dividend was reduced to 2.2 pence per share.
Chief Executive Matt Pullen said the Group returned to revenue growth despite subdued market conditions, attributing the performance to its diversified portfolio. “We are accelerating action to reduce costs and optimise our national manufacturing network, which is expected to materially improve Landscaping Products profitability in 2026,” Pullen said.
The Roofing Products segment saw robust growth, led by Viridian Solar and Marley Roofing, while Water Management and Mortars drove profitable revenue in Building Products.
However, Landscaping Products faced pricing pressure and a less profitable product mix, prompting a strategic improvement plan expected to yield £9 million in annualised cost savings by 2026.
Reported operating profit fell 37% to £18.1 million, and profit before tax dropped 46% to £11.7 million. Basic EPS declined 45% to 3.5 pence.
The company maintained a strong balance sheet, with net debt reduced by £4.2 million year-on-year and leverage steady at 1.8 times adjusted annualised EBITDA.
Looking ahead, Marshalls’ Board expects full-year results to align with revised guidance issued in July, forecasting adjusted profit before tax between £42 million and £46 million. The Group remains optimistic about medium-term growth, supported by government investment in housing and infrastructure and its ongoing ‘Transform & Grow’ strategy.