Marshalls warns of soft activity levels in key markets

(Sharecast News) - Landscaping products manufacturer Marshalls warned on Friday that activity levels in its key markets had softened from the end of May and said it did not see "any immediate catalyst" for improvement for the remainder of 2025. Interim revenues came to £319.0m, up 4% year-on-year, with volume growth being "partially offset" by weaker pricing and product mix.

Landscaping products revenue contracted by 1% year-on-year to £135.0m, a "significant improvement" on the 11% year-on-year reduction reported in H224, underpinned by improved engagement with key customers leading to volume gains and regaining of market share.

However, Marshalls cautioned that landscaping end markets "remain challenging", with structural overcapacity in the UK supply chain continuing to exert downward pressure on prices.

Marshalls said profitability "fell short" of original expectations and now, assuming that headwinds continue with no increase in market activity levels, these same headwinds were expected to result in continued pressure on profitability in H2.

Elsewhere, building products revenue was up 5% at £86.0m, and roofing products revenue was 11% higher at £98.0m.

"Being mindful of continuing uncertainty in the macroeconomic environment, the board currently sees no improvement in market activity levels through the remainder of 2025. Accordingly, its FY expectations for the group have reduced and it now expects adjusted profit before tax to be in the range of £42.0m and £46.0m in 2025," said Marshalls.

Reporting by Iain Gilbert at Sharecast.com