Building products group Marshalls has posted a 77 per cent increase in pre-tax profit in its latest full-year results, despite a fall in turnover.
The Yorkshire-based firm today revealed profit before tax of £39.4m for the 12 months to 31 December 2024, up from £22.2m in the prior year.
However, the increase was largely due to costs incurred in resetting the business in 2023. When removing one-off outlays from both years, the firm made an adjusted pre-tax profit of £52.2m in 2024, down 2 per cent year on year.
The London Stock Exchange-listed Marshalls spent £11.3m on a major restructuring exercise in 2023, as it “took steps to reduce manufacturing capacity and the cost base in response to a reduction in market demand”.
This process was also cited as the reason for a further £7m charge the same year for impairment of property, plant and equipment.
Marshalls’ revenue dropped 8 per cent to £619.2m in 2024, with the total being £671.2m the previous year.
But chief executive Matt Pullen said in this morning’s results announcement that he was “proud” of the group’s “resilient financial performance in challenging market conditions”.
He added: “The reduction in revenue was partly mitigated by decisive actions taken in 2023 to reduce capacity and costs by around £11m, improve manufacturing efficiency and lower net finance expenses.
“Pleasingly, we also reduced net debt through active working capital management, optimising capital expenditure plans and