Marshalls: Slight Decline in Q1 Trading; Full Year Concensus Unchanged

• In line trading performance year-to-date supports unchanged full-year expectations 

Marshalls plc, the diversified building products manufacturer and sustainable solutions provider for the built environment, provides the following trading update for the four months to 30 April 2026 ahead of its Annual General Meeting. 

Highlights

• Trading was in line with the Board’s expectations for the four months ended 30 April 2026 with Group revenue at £205 million (2025: £207 million), down 1% year-on-year.
  
  
• Landscaping Products continued to make encouraging operational and commercial progress with volumes in line with expectations and continued market share gains in subdued end markets, underpinned by disciplined execution of the performance improvement plan which has improved service and strengthened customer relationships.
  
  
• The Board’s expectations for the full year remain unchanged. 

Trading Update

Group revenue in the period of £205 million was 1% below the prior year 2025: (£207 million), with trading in line with the Board’s expectations despite continued end-market uncertainty. 

The Group is responding in a disciplined way to cost inflation arising from the war in the Middle East, using targeted commercial actions and working closely with customers to recover cost where possible, while maintaining our strong customer relationships.  With the vast majority of our products manufactured in Britain, our UK-centric manufacturing network limits direct exposure to international freight disruption and supports continuity of supply, service and quality. 

In Landscaping Products, revenue was £86 million (2025: £86 million), in line with 2025. The business has re-gained market share without eroding margins, supported by strengthened customer relationships, a simplified product portfolio and an improved service offering. Execution of the performance improvement plan continues to deliver progress, and the business remains on track to deliver the previously announced £11 million of annualised cost savings by the end of the year. 

In Building Products, revenue was £56 million (2025: £56 million), in line with the prior year. While Mortars & Screeds benefited from market conditions that continued to favour ready-to-use products, trading in Bricks & Masonry was impacted by continued weakness in new housing and competitive market conditions.  Water Management continues to make good strategic progress, building a strong pipeline of design-led opportunities, positioning the business to capture expected growth under AMP8 investment cycles, alongside near-term opportunities. 

In Roofing Products, revenue was £63 million (2025: £65 million), down 3% year-on-year. Consistent with the trends noted in the full year results, Marley continued to operate in a competitive concrete roof tile market, driven by softer demand levels and additional industry capacity. Despite this backdrop, trading in the first four months of the year has been in line with expectations supported by a continued focus on commercial discipline, service performance and manufacturing efficiency. Viridian Solar continued to perform well, maintaining margins and delivering year-on-year revenue growth. 

Balance sheet

The Group’s balance sheet remains strong. Pre-IFRS 16 net debt as at 30 April 2026 was £167 million, a reduction compared to the prior year balance of £171 million.  £107 million of the Group’s revolving credit facility was undrawn at the period end, which provides significant liquidity to fund its strategic and operational plans. We continue to expect the balance sheet to de-lever in 2026, with the increase in net debt since 31 December 2025 reflecting normal seasonal working capital absorption. 

Outlook

The macroeconomic outlook remains uncertain and there is potential for ongoing volatility arising from the war in the Middle East to further impact trading conditions.  Nevertheless, the Group’s performance in the four months to April 2026, alongside its diversified portfolio, strong balance sheet and disciplined execution of its ‘Transform & Grow’ strategy, continue to support the Board’s expectations for the full year, which remain unchanged. 

Simon Bourne, Chief Executive Officer, commented:

“Trading in the first four months of the year has been in line with our expectations, and our teams are making clear progress in the areas within our control.  The disciplined execution of our ‘Transform & Grow’ strategy is strengthening our market position, improving service and operational performance, alongside maintaining a tight focus on cash, cost and capital allocation. 

“In Landscaping, the performance improvement plan continues to deliver progress; in Water Management, we are building momentum; and across Roofing, disciplined commercial and operational execution is supporting performance. This progress means our expectations for the full year remain unchanged and reinforces our confidence in the strategic direction of the Group and our ability to deliver sustainable, profitable growth over the medium term.”

Source : Marshalls plc

Image : Marshalls plc

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