Marshalls struggles as landscaping division sales slump
- Marshalls experienced an 8% decline in revenues to £619.2 million in 2024 due to challenges in the construction market.
- The landscaping division was particularly hard hit with a 17% slump in sales because of lower volumes and pricing.
- The company anticipates market recovery in 2025, supported by government plans for increased housebuilding.
In the United Kingdom, Marshalls, a prominent building materials firm, faced significant challenges in 2024, reporting a decline in revenues. The company's overall revenues decreased by 8%, amounting to £619.2 million, as a result of a notable slump in its landscaping division, which experienced a 17% drop due to lower demand and pricing pressures. This slump is attributed to a difficult construction market that has been prevalent throughout the past year. Despite the decline in revenues from the landscaping segment, Marshalls experienced positive performance in its roofing business, which saw a 4% increase in revenues, primarily driven by growth in the solar panel sector. This diversification of offerings seems to be a strategic move to counterbalance the negative impacts that their landscaping division faced. In response to the revenue downturn, Marshalls undertook aggressive cost-cutting measures and streamlined operations. These efforts resulted in a notable increase in pre-tax profits, which soared by 77% to £39.4 million for the year. Chief Executive Matt Pullen expressed optimism for the future, highlighting the enhancements driven by operational efficiency which, along with governmental efforts to boost housing, could facilitate market recovery. Looking forward, Marshalls intends to leverage the UK Government's commitment to housebuilding and infrastructure improvement as a means to stabilize and grow its businesses. Although it remains optimistic about a market recovery expected later in 2025, the company acknowledges the challenges that were faced last year.