Marshalls Shares Slide as H1 Profit Dips, Dividend Cut

Marshalls plc (LON: MSLH) shares fell over 2% in early Monday trading after the landscaping and building materials group reported lower first-half profits and trimmed its interim dividend.

For the six months to 30 June 2025, the Yorkshire-based company posted a 4% rise in revenue to £319.5m, aided by solid growth in its Roofing and Building Products divisions. However, adjusted operating profit dropped 16% to £28.4m, while pre-tax profit fell 46% to £11.7m on a reported basis. Basic earnings per share slid 45% to 3.5p.

The interim dividend was cut by 15% to 2.2p per share, in line with the company’s policy.

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Marshalls said its ‘Transform & Grow’ strategy was beginning to bear fruit, with gains in market share for Landscaping Products and robust performances from Viridian Solar and Marley Roofing. Yet subdued end-market demand, pricing pressures, and a less profitable product mix weighed on margins.

The group is accelerating cost-cutting measures, including optimising its national manufacturing footprint, with £9m in annual savings expected by 2026.

Chief executive Matt Pullen said: “Whilst profit was below expectations, we have strengthened customer relationships and seen volume growth in the first half. We are taking decisive action to improve profitability in Landscaping Products and deliver the turnaround.”

The company warned it sees “no improvement” in market activity for the rest of 2025, but remained optimistic about medium-term prospects, citing government commitments to housing and infrastructure investment.