Trading Statement
FY2025 revenue £632m, up 2% year-on-year, adjusted profit in-line with expectations despite subdued markets.
vs expectations: in-line
- Group revenue £632 million (prior £621 million)
- Revenue growth +2%
- Pre-IFRS 16 net debt £138 million (prior £134 million)
- Landscaping Products annualised cost savings £11 million
- Landscaping Products revenue £266 million (prior £268 million)
- Bank facility headroom £125 million
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Marshalls, a leading manufacturer of sustainable solutions for the built environment, provides the following trading update for the year ended 31 December 2025.
Overview
| á | 2025 adjusted profit before tax in-line with market expectations 1 | ||
|---|---|---|---|
| á | Group revenue of £632 million for the year, representing year-on-year growth of two per cent and in-line with trends reported in the November Trading Update | ||
| á | Good strategic progress against the 'Transform & Grow' strategy with Landscaping Products improvement plan on track to deliver £11 million of annualised cost savings | ||
| á | Balance sheet continues to be robust, with pre-IFRS16 net debt of £138 million | ||
| á | Despite an uncertain end market outlook, further progress is expected to be made in 2026 | ||
| á | Appointment of Simon Bourne as Chief Executive Officer | ||
| Divisional trading performance | |||
| Revenue growth versus 2024 | H1 2025 | H2 2025 | FY2025 |
| Landscaping Products | -1% | -1% | -1% |
| Building Products | +6% | +3% | +4% |
| Roofing Products | +11% | -2% | +4% |
| Group | +4% | 0% | +2% |
Landscaping Products' revenue was £266 million (2024: £268 million), which is a reduction of one per cent compared to 2024. This comprised volume growth of four per cent in a subdued market, offset by price investment of one per cent and a mix impact of four per cent. The impact of each factor moderated slightly in the second half of the year.
Building Products' revenue was £172 million (2024: £165 million), which represents an increase of four per cent. Revenue growth moderated to three per cent in the second half of the year as the strong growth in Water Management was partially offset by a further softening in Bricks.
Roofing Products' revenue was £194 million (2024: £186 million), which is an increase of four per cent, driven by growth of c.32 per cent in Viridian Solar, partially offset by a reduction in Marley. Viridian Solar delivered sequential half-on-half revenue growth during 2025. As expected, year-on-year revenue growth moderated to c.18% in H2 as the implementation of the Part L energy efficiency regulations matured resulting in tougher comparatives. Lower market activity levels and relatively strong comparators resulted in Marley revenues contracting in the second half.
Landscaping Products improvement plan
Encouraging progress was made on the Landscaping Products improvement plan resulting in volume and market share growth. The network optimisation and self-help actions taken in 2025, including exiting UK quarried natural stone processing, were concluded as planned in the second half of the year. These actions are expected to deliver total annualised savings of around £11 million, of which around £3 million were realised in 2025.
Balance sheet and liquidity
The Group's balance sheet continues to be robust, with pre-IFRS16 net debt of £138 million at the year-end (December 2024: £134 million). The Group has significant liquidity to fund its strategic and operational growth plans with £125 million of headroom at the year-end on its recently refinanced syndicated bank facility.
Outlook
The Group expects to report full year adjusted profit before tax in-line with market expectations1 despite subdued end markets and the impact of prolonged pre-Budget uncertainty during the second half. The outlook for 2026 continues to be uncertain and accordingly, the Board remains focused on operational improvements through its 'Transform & Grow' strategy. While the Group is not anticipating a significant improvement in market activity levels during the next 12 months, the actions taken to reduce the cost base during 2025 give the Board confidence that the Group will deliver an improved financial performance in 2026.
Notice of Results
The Group will announce its results for the year ended 31 December 2025 on 16 March 2026.
Simon Bourne, Chief Executive Officer, commented:
"Marshalls delivered a resilient performance, evidenced by a return to revenue growth despite the challenging market backdrop, and delivering profits in-line with the market's expectations. We have made good progress with our 'Transform & Grow' strategy and with an increased focus on execution, I am confident that the Group is well positioned to benefit from a market recovery and structural growth drivers over the medium term."
1 Company compiled consensus for adjusted profit before tax is £43.6 million with a range of £42.0 million to £44.4 million.
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