Elland-based Marshalls sees drop in revenue as economic pressures set in

In a trading update issued to the London Stock Exchange, the group noted that its performance had been impacted by the 27 per cent drop in new housing starts, as reported by the National House Building Council.

The update added: “Management have acted quickly to reduce costs in the business and are accelerating plans to improve production efficiency, whilst ensuring flexibility to respond when market demand improves.”

“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 its key strategic initiatives.

"In the near-term, the macro-economic climate is expected to remain challenging and the trading performance in the year to date has been weaker than originally anticipated.”

Group revenue for the four months ended 30 April 2023 was £227 million, up from £202 million in 2022.

The update noted that the group’s landscaping division, Marshalls Landscape Products, had continued to experience “tough market conditions” due to its exposure to new house building and the more discretionary elements of private housing RMI.

Due to these issues, it delivered revenue of £110 million, down from £140 million in 2022 and representing a reduction of 21 per cent.

Marshalls Building Products also saw a contraction of nine per cent, with revenue falling from £61 million for the first quarter of 2022 to £55 million in 2023.

The update noted that revenue was “modestly” lower year-on-year in the bricks and masonry and mortars businesses, whilst drainage and aggregates were held back by deferred new housing starts.

Marley Roofing Products, another part of the group, delivered revenue of £61 million, a drop of six per cent from the year prior.