Marshalls LfL sales up 1%; sees FY in line despite weaker market

Landscaping and building supplies provider Marshalls said it expected to deliver full-year profits in line with expectations despite weaker market conditions in the final quarter as inflation started to hit sales.

The company said group revenue for the year to end-December came in at £719m. Like-for-like sales rose 1% over the period, including the Marley roofing products business, acquired last year, they were up 22%.

Adjusted pre-tax profit is expected to come in at £89.8m-91.1m, according to company-compiled estimates.

Marshalls said its landscape division experienced tough market conditions, with revenues falling 7% due to its exposure to the more discretionary elements of private housing repairs maintenance and improvement market.

The rate of contraction in the fourth quarter moderated to 12% in the final quarter of the year from 16% in the prior three months, reflecting a more stable inventory profile in the distribution channel, Marshalls said.

Building products operations saw some slowing of activity in the final quarter of the year with poor weather disrupting construction sites in December. Annual revenue grew by 17% to £193m, with a particularly strong performance from the bricks and masonry business.

Marley, which makes roofing products, delivered revenue of £132 million in the eight months of ownership, up 6% year on year. Sales growth moderated during the second half due to a softer market backdrop and destocking in the distribution channel, with revenue in the final quarter being in-line with 2021.

Reporting by Frank Prenesti for Sharecast.com