Marshalls to pay no interim dividend after swinging to H1 loss

Marshalls said on Tuesday that total revenues had dropped 25% to £210.0m, resulting in a statutory loss of £16.0m - a marked turnaround from the profit of £37.0m recorded a year earlier. Operating profits also tumbled, down 91% to £3.0m.

The FTSE 250-listed firm completed a restructuring programme throughout the period, letting go of around 15% of its staff and permanently shuttering three manufacturing facilities and a number of Premier Mortars locations.

Marshalls' cost-cutting efforts actually cost it £17.0m in the half but the group expects to eventually result in an annual savings of £12.0m.

Net debt was slightly higher also - up 1% at £98.0m.

Discussing Marshalls' performance on Tuesday, analysts at Shore Capital Markets said: "We think Marshalls is fundamentally one of the strongest companies in the building materials sector.

"However, our valuation work suggests the shares are trading at close to fair value. Our recommendation is 'hold'."

As of 0850 BST, Marshalls shares were down 1.49% at 663.0p.