Marshalls plc (LON:MSLH), a leading manufacturer of sustainable solutions for the built environment, has announced its results for the year ended 31 December 2024.
| · | Resilient Group performance reflecting decisive management actions and diversification strategy |
| · | Focused improvement actions in Landscaping Products gaining traction, revenue growth expected in 2025 |
| · | Strong performance by Roofing Products that has continued into 2025 |
| · | Building Products returned to profit growth and is well positioned for 2025 |
| · | Balance sheet strengthened through further reduction in net debt |
| · | ‘Transform & Grow’ strategy launched in November 2024 and being rolled out at pace |
Financial summary
| £’M | 2024 | 2023 | Change |
| Revenue | 619.2 | 671.2 | (8%) |
| Adjusted results (Notes 1 and 2 below) | |||
| Adjusted EBITDA | 97.8 | 103.6 | (6%) |
| Adjusted operating profit | 66.7 | 70.7 | (6%) |
| Adjusted profit before tax | 52.2 | 53.3 | (2%) |
| Adjusted basic EPS – pence | 16.0 | 16.7 | (4%) |
| Adjusted annualised ROCE (%) | 8.2 | 8.4 | (0.2ppts) |
| Final dividend (proposed) – pence | 5.4 | 5.7 | (5%) |
| Total dividend (proposed) – pence | 8.0 | 8.3 | (4%) |
| Pre-IFRS 16 net debt | 133.9 | 172.9 | 23% |
| Reported results | |||
| Operating profit | 53.9 | 41.0 | 31% |
| Profit before tax | 39.4 | 22.2 | 77% |
| Basic EPS – pence | 12.3 | 7.4 | 66% |
Financial highlights
| · | Financial performance benefited from efficiency gains and cost reductions, together with strong performances from Roofing and Building Products |
| · | Adjusted operating cashflow conversion was strong at 106 per cent (2023: 106 per cent), reflecting disciplined working capital management |
| · | Robust balance sheet with a year-on-year pre-IFRS16 net debt reduction of £39 million |
| · | Year end leverage substantially improved to 1.5 times adjusted EBITDA (2023: 1.9 times) |
Outlook
| · | The Board expects a market recovery later this year, which should strengthen progressively |
| · | This confidence is underpinned by the Government’s ambition to reinvigorate new house building and to invest in the nation’s infrastructure alongside further likely cuts to the base rate |
| · | The Group is well-placed to leverage this recovery through its diverse portfolio of businesses, as evidenced by the encouraging performances in Roofing and Building Products, which currently deliver 80 per cent of profits, and the benefit of operational leverage |
| · | This strength will be further bolstered by an improved performance in Landscaping Products, profitable growth through the execution of the ‘Transform & Grow’ strategy, and capitalising on a market recovery |
| · | The Group is well positioned to respond swiftly to improving activity levels as key end markets recover and the Board remains confident about delivering a material increase in profitability and returns over the medium-term |
Matt Pullen, Chief Executive, commented:
“I am pleased to report our results for what has been an important year for Marshalls, where the Group has shown resilience in challenging markets by restricting the reduction in profit before tax to two per cent despite an eight per cent contraction in revenue. During the year, we also launched our ‘Transform & Grow’ strategy which establishes a solid foundation for future market outperformance across our diverse and balanced business portfolio.
We are particularly pleased with the growth in Roofing Products in the year. Marley Roofing returned to growth in the second half of the year and Viridian Solar performed strongly driven by the increased adoption of in-roof solar solutions in new housing. Our Building Products segment, including Marshalls Bricks and Marshalls Water Management, has also strengthened, with revenues improving sequentially in the second half, good profit growth for the full year and an expanding order book.
The positive performances of our Roofing and Building Products, which contributed more than 80 per cent of our profit in 2024, highlight the strength of a diverse portfolio. The focused improvement plans in Landscaping that were implemented last year are gaining traction and will deliver a progressive and significant improvement in profitability. Additionally, our disciplined focus on working capital management has strengthened our balance sheet through a £39 million reduction in pre-IFRS16 net debt. I am proud of the Group’s performance and deeply grateful to all my colleagues for their support, hard work and dedication throughout the year.
As we look ahead, we are encouraged by the Government’s commitment to boosting new house building and investing in national infrastructure, which together with our ‘Transform & Grow’ strategy and the positive impact of operational leverage, will benefit all our businesses in the medium term. In the nearer term, we expect a market recovery later this year, which should strengthen progressively.”
There will be a live presentation today at 10am at the offices of Peel Hunt for analysts and investors, which will also be webcast live. The presentation will be available for analysts and investors who are unable to view the webcast live and can be accessed on Marshalls’ website at www.marshalls.co.uk. Users can register to access the webcast using the following link: https://brrmedia.news/MSLH_PR24
