Marshalls has reported a 13% dip in its first half revenue after citing subdued housing repair and maintenance markets.

The manufacturing company saw its revenue drop to £306.7m in the six months to 30 June, down from £354.1m in the same period in 2023.

Yorkshire-based Marshalls, which is listed on the FTSE 250 Index on the London Stock Exchange, manufactures natural stone and concrete hard landscaping products to supply the construction, home improvement and landscape markets.

The group also posted a 19% fall in underlying operating profit in its H1 results, while adjusted EBITDA fell by 14% to £50.6m.

Chief executive at Marshalls, Matt Pullen, said the group had still managed to deliver a “resilient performance” in weak end markets.

“The result in the first half is encouraging and demonstrates that the strategy of diversification, building on the group’s historic core landscape products business, through the acquisition and improvement of less cyclical businesses in recent years, has resulted in a more balanced group,” Pullen said.

“Whilst market conditions affected the landscape products result, I have a strong view that the segment's performance can be substantially improved through a number of self-help measures which we are implementing at pace.

“I am excited for the segment's prospects in a market recovery as it will benefit significantly from operational leverage.”

Marshalls also stated that its board is “cautiously optimistic” of a modest recovery in its end markets during H2, predicated on a progressive improvement in the macro-economic environment.

Pullen also revealed the group is undertaking a review of its strategy and has identified “a number of opportunities” to deliver outperformance over the medium-term.

“These include attractive sustainability-driven markets across bricks and masonry, water management and energy transition alongside a cyclical recovery in our core landscape and roofing businesses, supported by the new Government's commitment to increase housebuilding significantly,” he added.

AJ Bell investment director, Russ Mould, commented that despite double-digit percentage drops in first-half sales and profits, shares in Marshalls are “not flinching”.

“This may be partly because the company is cutting costs and reducing debt, and also partly because the company announced a dividend cut for 2023 and a profit warning for 2024 alongside March’s full-year results, so a lot of bad news may already be in the share price,” Mould added.

“The shares may be trading near 12-month highs, boosted by the self-help programme and lower net debt pile, since less borrowing means less risk, and less risk can mean a higher share price, or at least a higher multiple of earnings for the stock, all other things being equal.

“Hopes for interest rate cuts and the possible boost this may bring to the UK construction and home improvement industries may also be giving a lift to the share price, but it still stands no higher than in 2015, to again suggest expectations for any putative recovery are low.”

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