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 Highlights

  • Marshall’s H1FY24 revenue declined 13.4% YoY, primarily due to weak performance in Landscape Products
  • Net cash flow from operations rose 8.0% YoY, reflecting efficient working capital management
  • Roofing Products saw 12% growth, driven by Viridian Solar in Q3FY24
  • The board expects profit and net debt to align with full-year forecasts amid modest recovery

 Marshalls PLC (LSE:MSLH) is a UK-based company listed on the FTSE 250. The company is focused on providing sustainable solutions for the construction sector. The company operates through three main divisions: Marshalls Landscape Products, Marshalls Building Products, and Marley Roofing Products.

For the first half of the financial year 2024 (H1FY24), Marshalls reported revenue of GBP 306.7 million, down 13.4% compared to GBP 354.1 million in H1FY23. The drop was primarily due to weaker performance in Landscape Products, driven by ongoing low levels of newly built housing and reduced private housing repair, maintenance, and improvement (RMI) spending.

However, during the reported period, the company saw an improvement in net cash flow from operating activities. It rose by 8.0% to GBP 25.7 million, compared to GBP 23.8 million in the previous year. This positive cash flow growth was supported by a strong operating cash flow conversion of 111%.

Recent Business Update

Marshalls provided its third quarter trading update on 16 October 2024, reporting resilient performance despite challenging market conditions. Year-to-date revenue stood at GBP 476 million, reflecting a 9% like-for-like decline. However, Q3 showed positive trends, with Roofing Products achieving 12% growth, fueled by Viridian Solar, while Building Products remained stable, and Landscape Products saw a smaller contraction.

The company reduced pre-IFRS16 net debt to GBP 149 million. Looking ahead, Marshalls plans to capitalise on sustainability-driven opportunities and a potential housing market recovery, with further strategic details expected at the Capital Markets Event in November 2024.

Company Outlook

The board maintains a cautious but positive outlook for a modest recovery in the second half of the year, supported by improving overall economic conditions. Backed by the management measures implemented in 2023, the board anticipates that both profit and pre-IFRS16 net debt will align closely with previous forecasts for the full year.

Top 10 Shareholders

Approximately 48.65% of Marshalls' total shareholdings are held by its top 10 shareholders. Inflexion Private Equity Partners LLP holds the maximum number of shares with ~8.72% shareholding, followed by Montanaro Asset Management Limited with ~5.94% shareholding.

Stock Performance

The stock price of MSLH has declined by around 18.95% in the past month and decreased by around 30.72% in the past six months. The stock’s closing price is GBX 248.00 as of 14 January 2025 which is below the average of its 52-week range which spans from GBX 245.00 (low) to GBX 366.00 (high).

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 14 January 2025. The reference data in this report has been partly sourced from EODHD/Others.