UK building materials supplier Marshalls offsets weak housing demand with pricing and cost cuts, boosting interim operating profit to £30.7 million.
Marshalls posted an 8% rise in first-half operating profit to £30.7 million despite flat revenue of £380 million. Weakness in new housing and repair markets cut volumes, but pricing actions and lower costs supported earnings.
Profit before tax climbed 13% to £24.9 million, helped by reduced finance costs, while earnings per share rose 14% to £0.076. The company raised its interim dividend 14%, maintaining two-times adjusted earnings cover.
Landscaping Products revenue held steady as 2%-3% lower volumes were offset by pricing. Operating profit in the segment jumped £5.2 million on improved gross margins and overhead savings, part of an £11 million cost-cutting plan due by 2026.