Marshalls holds guidance but sees tough landscaping outlook

Building materials company Marshalls held full year guidance as it posted interim profits, but noted that the tough economic backdrop would hit consumer confidence at its landscaping division.

The company said adjusted core earnings rose 14% to £64.2m in the six months to June 30. It expects full year numbers to be in line with expectations as building products and its new Marley roofing acquisition offset weaker trading in landscaping, which is exposed to discretionary spending.

On a pre-tax basis, profits fell to £24m from £39m. Revenue was up 17% to £348.4m and the interim dividend was increased 21% to 5.7p a share.

“Looking forward, the board acknowledges that the macro outlook is becoming less certain due to geopolitical events driving up inflation and adversely impacting consumer confidence,” the company said on Thursday.

A shortage of bricks helped lift revenues at the building products unit 21% to £95.9m. However inflationary pressures the landscaping business where revenues fell 1% to £216.9m.

Marley, the roof tile company bought last April, generated £35.6m in revenues driven by the continuing boom in newbuild housing.

Reporting by Frank Prenesti at Sharecast.com