Marshalls, a leading supplier to the housing industry, reported a further decline in revenue yet anticipates a cyclical rebound within its principal sectors.
Headquartered in West Yorkshire, the group noted a three per cent fall in third-quarter revenue compared with the same period last yearlabelled by the company as a “material improvement” from previous months in the years, as reported by City AM.
At the conclusion of this year’s third quarter, Marshalls’ revenue was £476m, representing a nine per cent decrease from £528m at the same point last year.
The firm’s landscape division has seen significant challenges this year, with a quarterly revenue drop of 13 per cent and a 17 per cent reduction for the year so far.
Marshalls experienced robust growth in its roofing division, stability in building products, and an impressive 70 per cent surge in revenue for solar offerings, attributed to a rising demand for energy-efficient construction.
Marshalls has projected that its profit for the full year will align with earlier projections.
The wider construction sector has faced difficulties recently, where increased borrowing costs have compressed profit margins on projects, subsequently affecting Marshalls’ customer base.
Record-low levels have hit England’s house building schedule, not seen since monitoring commenced 17 years back, with numerous builders reporting a downturn in completions from the previous yearhowever, they remain optimistic about future prospects.
Marshalls has projected a “cyclical recovery” in landscape and roofing, “supported by the impact of the Government’s commitment to increase housebuilding significantly”.
The company expressed a “cautiously optimistic” outlook earlier this year.
Analysts at Panmure Liberum suggested that Marshalls “should see further improvements in revenues… [but] this trend is likely to be a slow burn.”
“Over the coming two to four years, we expect increased activity to drive margin expansion and a restoration in double digit returns”, the analysts further commented. They rated the stock as a ‘buy’.
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Original artice – https://business-live.co.uk/all-about/yorkshire-humber
