Marshalls has lowered its full-year profit expectations after citing “continuing uncertainty” in the macroeconomic environment.

The construction products supplier is now expecting its adjusted pre-tax profit to be in the range of £42m and £46m.

In a trading update for the market, Marshalls did reveal it had grown its revenue by 4% on last year to £319m, with volume growth being partially offset by weaker pricing and product mix.

However, the company also stated that activity levels in its key end markets, which cover its landscaping, building and roofing divisions, “softened” from the end of May. It added that its board “does not currently see any immediate catalyst for improvement” in any of these for the remainder of 2025.

“The performance of our building and roofing products segments, which both delivered revenue growth in subdued end markets, demonstrates the benefits of the group’s acquisition strategy,” said Marshalls chief executive, Matt Pullen.

“However, our landscaping products segment reported a weaker than expected performance. We remain focused on executing the performance improvement plan in this segment, however the softening of demand, a weaker product mix and targeted price investment have reduced our group profit expectations for 2025.”

Marshalls did also report that its balance sheet remains “strong”, ending the period with pre-IFRS16 net debt of £152m million. It said the increase in net debt in its H1 period reflects the “anticipated impact” of the company’s seasonal working capital requirements together with the settlement of its final Viridian Solar contingent consideration payment of £6.6m.

The group also had £145m undrawn on its revolving credit facility at the end of the period, which Marshalls said provides significant liquidity to fund its strategic and operational plans.

Pullen added: “We have taken action to reduce costs and optimise our national manufacturing network in the first half of the year and are taking further action at pace in the second half, which together are expected to improve landscaping profitability materially in 2026.”

AJ Bell investment director, Russ Mould, commented that Marshalls had “laid bare a multitude of problems” that add up to a “gloomier profit outlook”.

“Falling prices and cost inflation have crimped margins for landscaping products and put a crack in Marshalls’ earnings,” Mould added.

“The company is now working hard to take costs out of the business and position itself for a profit recovery next year. Marshalls’ shares slumped on the news, hitting their lowest level intraday since October 2023.”

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