Marshalls plc (LSE:MSLH) (MSLH) returned to revenue growth and said adjusted profit before tax was in line with market expectations while pressing a programme to deliver £11 million of annualised cost savings by the end of 2026.
The group ended the year with pre-IFRS 16 net debt of £137.9 million and leverage of 1.8 times pre-IFRS 16 adjusted EBITDA, the filing shows. Adjusted operating cashflow conversion was 88%. The company also refinanced its £270 million facility in November with no change in commercial terms.
Landscaping Products saw volumes rise 4% in a flat market, the company said, supported by market-share gains but offset by a weaker product mix; SKU count was cut by 30% and c.£3 million of cost savings were realised in-year as part of a plan to reach £11 million of annualised savings. Simon Bourne said the actions had resulted in "a sharper focus on execution."
Group growth was helped by Building Products (revenue +4%) and a strong performance at Viridian Solar, where revenue grew 32% and ArcBox volumes rose about 35% to £2 million, with international sales increasing around 160%. Marshalls said Water Management is pivoting toward infrastructure work and expects the project pipeline to convert into orders, with capital investment to remain within the previously guided £20m–£30m a year and a business case to be considered in the first half of 2026.
The board said it remains mindful of the conflict in the Middle East but, "in the absence of clarity," left expectations for the year unchanged and reiterated its focus on executing the 'Transform & Grow' plan to improve margin, cash and service outcomes over the medium term.
The recap
• Returned to revenue growth; adjusted profit before tax in line with company-compiled consensus of £43.5m.
• Pre-IFRS 16 net debt £137.9m and leverage 1.8x; adjusted operating cashflow conversion 88%.
• £11m annualised cost savings target (£3m delivered in 2025); Viridian Solar revenue +32% and ArcBox sales c.£2m.
