Firm begins cost-cutting drive in face of housebuilding slowdown
Marshalls has warned a recovery in trading conditions will take longer than expected as the firm said profit fell sharply last year.
The block paving and building materials specialist said revenue dropped 7% to £671m in 2023 with pre-tax profit slumping 40% to £22m.
And the firm said income in the first two months of 2024 was down on last year and added: “The start of this recovery is now expected to be slower and more modest than previously assumed. Therefore the Board believes that revenues in 2024 will be lower than previously expected and that profit will now be at a similar level to 2023.”
It said it had begun an efficiency drive designed to save £11m a year which has included mothballing factories, reducing shifts and rejigging commercial and support functions. It said the changes had seen 330 jobs go last year.
A further 300 staff will be joining transport firm Wincanton after Marshalls said it was outsourcing its logistics to the haulier with the switch expected to be completed by the end of the half year.
Marshalls said around 40% of revenue comes from the new build housing sector, 40% from commercial and infrastructure and 20% from private housing repair and maintenance.
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