Marshalls has revealed it has let go of around 250 staff due to “challenging” market conditions in the housebuilding sector.
In its half-year report, the building products supplier said a reduction in material demand across the new housebuilding and private housing RMI had led to a decline in the group’s profitability.
Its statutory profit before tax has dropped by over a quarter (30%), falling from £23.9m in the same period for 2022 to £16.7m.
Despite a reduction in roles across the group, chief executive Martyn Coffey says Marshalls has ensured that it still has capacity to meet demand should there be an “improvement in market conditions.”
He adds: “Our refreshed strategy is underpinned by our strong market positions, established brands and focused investment plans to drive ongoing operational improvement. Notwithstanding short-term challenges, the Board remains confident that the long-term market growth drivers and a focus on executing key strategic initiatives, will underpin a material improvement in profitability when market conditions normalise.”
Following disposal of its former Belgian subsidiary in April 2023, the group is now “solely focused” on the UK construction market, with approximately 30% of the group’s revenue sustained from new build housing, which has seen an over quarter (26%) drop in residential construction when compared to the same time frame of 2022.
The full report can be found here.