Marshalls, founded in the late 1880s, makes paving, bricks, roof tiles, solar roofing and drainage products for UK construction. Its original paving business has been squeezed by weak housebuilding and home improvement, and adjusted pre-tax profit fell from £90m in 2022 to £44m in 2025. Cost cuts and a new management focus lifted first-half 2026 profit, but the company assumes no market recovery and the shares sit well below their 2024 level.
Paving at the core, roofing and water around it
Marshalls reports three segments. Landscaping Products is the historic core: paving and outdoor products sold through a national, specification-led model, where architects and contractors name the product before distributors supply it. Roofing Products covers Marley Roofing (concrete and clay roof tiles) and Viridian Solar (solar panels built into the roof, sold mainly to housebuilders).
Building Products includes Bricks & Masonry, Mortars & Screeds and Water Management, which makes drainage and storm-water products and targets the AMP8 water-company investment cycle. The group says its customers value its brands, technical and design support and its carbon credentials. In 2024, Roofing and Building Products delivered more than 80% of group profit. 17 Mar 2025 10 Aug 2026 16 Mar 2026
Housing slump and a cost reset, 2023
Demand from housebuilders and private home improvement fell sharply. In 2023 revenue dropped 7% to £671m and adjusted pre-tax profit fell 41% to £53m. The total dividend was cut from 15.6p to 8.3p.
Management cut manufacturing capacity and costs, targeting £11m of annualised savings. It exited its Belgian operation, outsourced logistics to Wincanton and cut the term loan by £30m. Matt Pullen replaced Martyn Coffey as chief executive on 1 March 2024. He credited earlier acquisitions of less cyclical businesses for a more balanced group. 18 Mar 2024 18 Jan 2024 6 Dec 2023 12 Aug 2024
Transform & Grow, and a hoped-for recovery, 2024
At a capital markets event on 19 November 2024, Marshalls set medium-term targets: a 15% operating margin, growth 2-4% ahead of the construction market and a 15% return on capital employed. It also set net debt of 0.5 to 1.5 times EBITDA. Later results reports do not repeat the 15% margin figure. They speak of a 'material increase in profitability and returns over the medium-term'.
Net debt fell £39m to £134m in 2024, and Roofing and Building Products carried profits. Management expected the market to recover during 2024 and then in 2025. It did not. The shares peaked near 348p in July 2024. 19 Nov 2024 17 Mar 2025 21 Jan 2025 12 Aug 2024
Landscaping stumbles, 2025
In March 2025 the company promised Landscaping revenue growth in 2025 and 'a progressive and significant improvement in profitability from 2026'. Volumes did rise, helped by price cuts to win share from distributors. But demand shifted to cheaper products and profit fell. On 25 July 2025 the company cut full-year profit guidance to £42-46m. The shares fell from 269p in June to 179p by August.
Management raised its Landscaping cost-saving target from £9m (stated in August 2025) to £11m by the end of 2026. It cut the number of product lines by 30% and began consulting on exiting UK quarried natural stone processing, expected to add about £2m to profit in 2026. Full-year adjusted profit before tax fell 16% to £43.7m and the dividend was cut 16% to 6.7p. Group revenue still grew 2%, its first rise since 2022, with Viridian Solar up about 32%. 17 Mar 2025 11 Aug 2025 25 Jul 2025 12 Nov 2025 16 Mar 2026
“Whilst profit was below expectations, we have strengthened customer relationships and seen volume growth in the first half.” 11 Aug 2025
A new chief executive, November 2025
On 27 November 2025, Matt Pullen stepped down as chief executive with immediate effect; the announcement gives no reason. Simon Bourne, then chief commercial officer, became interim CEO and was made permanent on 19 January 2026. The group also refinanced its £270m bank facility in November with no change to commercial terms. 27 Nov 2025 19 Jan 2026 16 Mar 2026
Diversification helped, but Landscaping set the pace
Spreading into roofing, solar and water cushioned the group while paving weakened. Landscaping's problem was overcapacity and customers trading down, and a price-led push for volume cost margin. Guidance for a recovery in 2024 and for higher 2025 profit proved too optimistic.
Management has since moved to a plan that does not need a market upturn. In the March 2025 results, management said it was 'not simply waiting for a cyclical recovery'. It has also kept net debt in check throughout. 21 Jan 2025 17 Mar 2025 16 Mar 2026 10 Aug 2026
“We are not simply waiting for a cyclical recovery.” 16 Mar 2026
A long-serving insider takes charge
Simon Bourne has been with the group for over 10 years. Vanda Murray chairs the board and Justin Lockwood is chief financial officer. Bourne's stated priority is sharper execution: a flatter organisation, tighter pricing discipline, and incentives linked to margin, cash and service.
After the shares fell in May 2026, the chair, two non-executive directors and people closely associated with the CEO and CFO bought shares at about £1.25 to £1.29. The CEO and CFO also buy small monthly amounts through an employee plan. Janus Henderson, M&G and Allianz Global Investors each reported holdings above 5% during 2026. 19 Jan 2026 14 May 2026 14 May 2026 2 Apr 2026 2 Jun 2026 2 Sep 2026
Profit up on flat sales
First-half 2026 revenue was flat at £318m, but adjusted operating profit rose 8% to £30.7m. Landscaping drove the gain as savings arrived and market share and customer scores improved. Building Products was mixed: Mortars & Screeds held up, while weak new-build housing hurt Bricks & Masonry and Water Management. Roofing held up, though new concrete tile capacity (about 12% more in a year) adds price pressure.
Net debt was £137m, 1.7 times EBITDA, and the interim dividend rose to 2.5p. The shares stood at 131p in April 2026 and 175p in September. 10 Aug 2026 13 May 2026
Savings now, infrastructure and solar later
Management assumes no material market recovery in the second half of 2026. It says full-year profit expectations are unchanged and the £11m Landscaping savings are on track for the end of 2026. The March results also said a Landscaping adjusted operating margin of at least 12% is 'achievable'. The group expects its balance sheet to de-lever during 2026.
Water Management has framework agreements with three water companies, and AMP8-related sales more than doubled in the half. Viridian Solar expects the Future Homes Standard, which requires solar on new homes, to lift demand from late 2028, fully embedded by 2030. Whether the medium-term margin and returns ambitions are reached depends on housing and home improvement markets, which the company calls subdued. 10 Aug 2026 16 Mar 2026 13 May 2026
“We remain focused on what we can control: service, cost, cash, working capital and disciplined capital allocation.” 10 Aug 2026
Written by AI from Marshalls's own announcements since Oct 2023 · every paragraph links to its sources