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Highlights:

  • MSLH revenue rose 4% YoY to GBP 319 million in H1FY25, but profit outlook cut
  • MSLH Landscaping Products revenue fell 1% YoY amid pricing pressure and weak mix
  • MSLH expects FY25 adjusted PBT of GBP 42–46 million, down from earlier expectations

Marshalls plc (LSE:MSLH) is a UK-based manufacturer of sustainable building and landscaping products for the built environment. The company serves commercial, public, and residential sectors through three core divisions: Landscaping, Building Products, and Roofing. It operates manufacturing sites across the UK and has expanded its portfolio through acquisitions such as Marley Roofing and Viridian Solar.

For the six months ended 30 June 2025, Marshalls reported total revenue of  GBP 319 million, marking a 4% year-on-year increase from GBP 307 million in the same period last year. Volume gains supported this growth, although these were partially offset by a weaker pricing environment and a less favourable product mix. However, the company noted a drop in activity levels across key end markets from the end of May and stated it does not anticipate a recovery in market conditions for the remainder of 2025. As a result, full-year profit expectations have been revised downwards.

Revenue for Landscaping Products declined by 1% YoY to GBP 135 million, an improvement compared to the 11% contraction reported in H2FY24. Gains in volume and market share through better customer engagement helped partially mitigate ongoing pressures. However, persistent structural overcapacity in the UK landscape supply chain and increased value engineering in construction projects have pushed demand toward lower-margin, commodity products. This, alongside network underutilisation and targeted pricing measures to regain share, contributed to lower profitability for the segment. To address the performance issues, the company initiated a partial closure of a manufacturing site in H1, expected to yield annualised savings of GBP 3 million. Additional cost-saving initiatives planned for H2 aim to increase total annualised benefits to GBP 9 million. These actions are part of Marshalls’ broader efforts to optimise its manufacturing footprint and prepare for a performance recovery in 2026.

Revenue from Building Products rose by 5% YoY to GBP 86 million, led by continued growth in the Water Management division, which benefited from infrastructure demand and commercial execution. Mortars also posted gains, supported by moderate housing build rate improvements favouring ready-to-use options. Meanwhile, Brick revenue declined amid stiff competition. The company chose to maintain pricing discipline rather than pursue lower-margin volume.

Roofing Products recorded revenue of GBP 98 million, up 11% YoY. Growth was primarily driven by Viridian Solar, which posted a 50% increase in revenue for the period. Marley Roofing added modest growth, maintaining market share in concrete tiles while expanding in clay plain tiles and timber battens. As of 30 June 2025, Marshalls reported pre-IFRS16 net debt of GBP 152 million, up from GBP 134 million at the end of December 2024. The increase reflects seasonal working capital requirements and the settlement of a GBP 6.6 million contingent payment for the Viridian Solar acquisition. The group maintained GBP 145 million in undrawn facilities, supporting its liquidity position.

The Board now expects adjusted profit before tax for FY25 to fall between GBP 42 million and GBP 46 million, citing continued pressue in market demand and on Landscaping profitability. The company is accelerating cost-saving initiatives and remains focused on completing its Landscaping improvement plan. Management emphasised that efforts to reshape the national manufacturing footprint and reduce structural inefficiencies will continue into H2FY25, laying the groundwork for an improved performance trajectory into 2026.

MSLH shares were trading 23.67% lower at GBX 201.50 per share as on 25 July 2025.