'We have delivered a resilient first half performance': Marshalls reports increase in profits
Building products manufacturer Marshalls said that disciplined financial management helped it deliver profit growth during a period of economic uncertainty and subdued demand.
In the six months ended 30 June 2026, Marshalls recorded group revenue of £317.8 million, which was broadly in line with the prior year, and adjusted profit before tax of £24.9 million, which was up 13.2 per cent on the same period the year before. In a statement to accompany the results, Marshalls said management had concentrated on quality of service, margin and cash over the last half year. Marshalls, which was established in the late 1880s, operates through three reporting segments: landscaping products; building products and roofing products. The group, which is headquartered in Elland, West Yorkshire, also revealed that its interim dividend increased by 13.6 per cent to 2.5 pence per share.
Simon Bourne, the chief executive officer, commented: “We have delivered a resilient first half performance, despite subdued end markets, with adjusted profit growth delivered in line with expectations. This reflects our reinvigorated focus on sharper execution, continued financial discipline and the benefits of actions taken through FY25 (full year 2025) to create a leaner and more focused operating platform.
“Landscaping products demonstrates the clearest evidence of this progress, with our performance improvement plan delivering improved profitability and the business remaining on track to deliver the previously announced £11 million of annualised cost savings by the end of FY26 (full year 2026). Roofing products continued to provide a strong contribution, driven by Viridian Solar and disciplined trading in Marley Roofing. Building products was mixed, with mortars and screeds resilient and water management positioned for infrastructure-led growth, but weak new build housing demand weighed on both bricks and masonry and water management performance in the first half.
“We remain focused on what we can control: service, cost, cash, working capital and disciplined capital allocation.
He added: "We are not factoring a material market recovery into our second half assumptions, and the operational progress delivered to date, together with the strength of our diversified portfolio, supports the board’s confidence in the group’s outlook for the full year and our medium-term growth potential.”
In a strategy update, Marshalls said that landscaping end markets remained at low activity levels through the first half, with continued pressure in new build housing and discretionary RMI (Repair, Maintenance, and Improvement) and competitive conditions across several product categories.
"Against this backdrop, landscaping products delivered an improvement in profitability, providing clear evidence that the strategic, commercial and operational actions taken over the last 18 months are translating into improved financial performance.”
Mr Bourne said Marshalls strategy was "all built around self help and what we can control". He said cost savings implemented the previous year had included overhead cost reduction, a re-mapping of production processes and around 60 job cuts when Marshalls exited its Natural Stone products business. Mr Bourne said infrastructure had been fairly resilient for Marshalls while house building had been subdued, but Marshalls prided itself on having a diversified portfolio. He added: "A scheme of the nature of Help to Buy could help to stimulate the housing market."