Marshalls, a key supplier to the housing industry, has forecasted a recovery in the construction sector by 2025 after facing challenges in recent years.
However, the company maintains a “cautious” stance due to “continued market uncertainty” and the impact of rising costs from increased National Insurance contributions, as reported by City AM.
The firm anticipates a £3m surge in its wage bill following the tax hikes announced in October’s Budget, which are expected to heavily affect labour-intensive sectors such as construction, retail, and hospitality.
The Yorkshire-based company reported an 8% decline in revenue for the year ending December 31, leading to an 8% fall in its share price. Landscaping revenue took a significant hit, down by 17%, mirroring “lower demand from house builders and continued subdued activity in private housing maintenance”.
Higher borrowing costs have squeezed profit margins on numerous development projects, influencing Marshall’s markets.
With England’s house building pipeline at its lowest since records began 17 years ago and many housebuilders noting a drop in completions year-on-year, the outlook remains tentative.
Despite this, Marshalls is optimistic that profitability in 2025 “will be ahead of 2024”, with growth rates hinging on the speed of market recovery and the effectiveness of short-term strategies being implemented.
Chief executive Matt Pullen stated: “We are pleased to report a resilient performance and further reduction in net debt. Despite subdued market activity throughout the year, our results underline the strength of our diversified portfolio of businesses.”
“Looking ahead to 2025, our focus will be on the execution of our new Transform & Grow strategy, capitalising on identified growth opportunities, continuing to drive performance in our core business, and maintaining a disciplined approach to investments and cost management.”
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Original artice – https://business-live.co.uk/all-about/yorkshire-humber
