Marshalls has recorded a 4% year-on-year revenue increase, totalling £319.5m in the first half of the year, as it reiterated its guidance for the full financial year.

The latest update comes after the landscaping products manufacturer last month lowered its guidance for the full financial year, citing "continuing uncertainty" in the macroeconomic environment.

The firm said the revenue increase was driven by growth in its building and roofing products, but this was partially offset by modest contraction in landscaping products.

In the six months to 30 June, Marshalls’ profit before tax fell by 46% to £11.7m, while its operating profit dropped by 37% year-on-year to £18.1m.

Furthermore, its basic earnings per share reduced by 45% to 3.5 pence.

Marshalls added that it was accelerating its manufacturing footprint optimisation and overhead reduction in landscaping products, and expecting to deliver annualised costs of £9m by 2026.

Chief executive at Marshalls, Matt Pullen, said: "This performance reflects the benefits of our diversified portfolio, with building and roofing products delivering good revenue and operating profit growth, and landscaping products reporting solid volume growth during the period although at lower profitability.

"The landscaping products improvement plan is firmly underway, and we have made solid, early progress with operational improvements. Whilst profit was below expectations, we have strengthened customer relationships and seen volume growth in the first half."

Marshalls said that while the macroeconomic outlook remains uncertain, it is "encouraged by the Government’s commitment to new housing and infrastructure investment", which is set to position it for sustainable growth across its businesses in the medium term.

The firm reiterated its profit guidance for 2025, which is expected to be in the range of £42m and £46m.

However, it does not currently see any improvement in market activity levels through the remainder of the year.

Investment director at AJ Bell, Russ Mould, stated that cracks have appeared to show in the company’s earnings.

He concluded: "During the pandemic Marshalls shaped up pretty well, its customer base for landscaping products had the money and, due to spending plenty of time in their gardens, incentive to spend to do up their outside spaces.

"However, a more constrained economic backdrop has not helped the business and the shares are trading well below their 2021 highs. There will be a measure of relief that the company is sticking with the reduced full-year guidance given at the end of July and Marshalls did eke out revenue growth in the first half of the year – helped by a decent showing for its roofing and building products businesses.

"The decision to position the group to benefit from infrastructure spend, particularly in the water space, looks a sensible one but investors may not have that much patience with Marshalls given its recent struggles."

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