Marshalls Reports Decline in Profit


Marshalls, a leading concrete-products company, announced a decrease in pre-tax profit for the first half of the year. However, despite this setback, the company remains optimistic about its revenue growth and its ability to position itself well for a market recovery.

During the first half of the year, Marshalls’ pre-tax profit stood at £16.7 million ($21.2 million), compared to £23.9 million in the previous year. This decline can be attributed to adjusted items totaling £16.5 million, as well as a rise in net financial expenses from £3.4 million to £10.1 million.

Although there was a slight decrease in profit, Marshalls’ revenue actually increased during this period. The company reported revenue of £354.1 million, compared to £348.4 million in the previous year. However, on a like-for-like basis, revenue contracted by 13%.

In light of these financial results, the board of Marshalls has made the decision to reduce the interim dividend from 5.7 pence to 2.6 pence.

Looking ahead, Marshalls acknowledges that the business environment remains challenging and is expected to persist into the second half of the year and even into 2024. However, the company remains focused on implementing strategies to minimize costs, enhance agility, and control cashflows. By doing so, Marshalls aims to position itself favorably for a market recovery.

Despite the short-term challenges, Chief Executive Martyn Coffey expressed confidence in Marshalls’ long-term prospects. He stated, “The board remains confident that the long-term market growth drivers and a focus on executing key strategic initiatives will underpin a material improvement in profitability when market conditions normalize.”

In conclusion, while Marshalls faced some difficulties in terms of profitability, the company maintains a positive outlook for the future. By addressing challenges head-on and continuing to execute its strategic plans, Marshalls is confident in its ability to weather the current market conditions and achieve long-term success.

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