On 29th April Marshalls completed the acquisition of Marley Group for £535m, giving it two months of Marely numbers in its 2022 interim results.
For the first six months of 2022 Marshalls generated group revenue of £348.4m, a 17% increase on 2021’s first-half £298.1m. On a like-for-like basis, excluding Marley, revenue increased by 7%.
Pre-tax profit was down from £38.9m last year to £23.9m this time, due to £18.4m one-off items, primarily £14.6m for Marley acquisition costs. Adjusted operating profit was up 15% to £48.0m.
Operating profit from sales of landscaping products were down 15% to £30m as the covid lockdown-inspired home improvement boom slowed but profit from sales of building products were up 45% to £13m. Marley roofing products contributed £8.6m operating profit in the two months of its sales included in these results.
Chief executive Martyn Coffey said: "Marshalls delivered a robust first half trading performance, demonstrating the strength of our business model and the benefits of greater diversification resulting from the transformational Marley deal completed in April 2022 and other acquisitions of recent years.
“Looking forward, the board acknowledges that the macro outlook is becoming less certain due to geopolitical events driving up inflation and adversely impacting consumer confidence. Notwithstanding this, the board's expectations for the group as a whole remain in line with market expectations for the full year, with the more positive backdrop within Marshalls Building Products and Marley expected to balance the continuation of tougher trading conditions in Marshalls Landscape Products, which has greater exposure to the discretionary element of private housing RMI.
“Our strategy is underpinned by our strong market positions, established brands and focused investment plans to drive ongoing operational improvement. We remain confident that this will continue to deliver profitable long‑term growth and that we will be able to continue to manage inflation through the effective management of our supply chain."
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