Marshalls PLC said trading in its latest year has progressed ‘as anticipated’ with decreased revenue but a ‘robust’ balance sheet.

The Elland, England-based landscaping products company said total revenue for 2023 was £671 million, down 7% from £719 million in 2022. This included an additional four months of trading from Marley Roofing Products.

Marshalls said that on a like-for-like basis, however, revenue ‘contracted’ by 13%. The reduction ‘reflects lower demand from house builders and continued subdued activity in private housing [repair, maintenance & improvements]’.

Marshalls Landscape Products revenue fell 18% to £321 million from £394 million, while Building Products revenue fell 12% to £170 million from £193 million. Marley’s revenue, meanwhile, rose to £180 million in 2023 from £132 million from May to December; this represents a 9% reduction like-for-like.

However, Marshalls said its balance sheet ‘remains robust’ with £173 million in net debt at December 31, down from £191 million one year prior.

Marshalls said management took decisive actions, such as closing factories and reducing shifts, to improve the firm’s agility and right-size by reducing costs and capacity. It expects these to deliver around £11 million in net annualised savings.

‘Importantly, management balanced the need to reduce capacity and the cost base in the short-term while retaining the flexibility to increase production when demand recovers,’ Marshalls added.

Marshalls acknowledged that short-term market challenges remain, but ‘remains confident that the long-term market growth drivers...will underpin a material improvement in profitability when markets recover.’

Marshalls is furthermore ‘encouraged recently’ by improving inflation trends and interest rate expectations.

Marshalls shares traded 1.1% higher at 252.90 pence on Thursday morning in London.

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