March 16 (Reuters) - Landscaping and roofing products supplier Marshalls on Monday cut its annual dividend by 16% and detailed cost-saving measures after subdued demand and industry overcapacity sent
Marshalls Reduces Dividend Amid Landscaping Unit Weakness and Profit Drop
Marshalls' Financial Performance and Strategic Response
March 16 (Reuters) - Landscaping and roofing products supplier Marshalls on Monday cut its annual dividend by 16% and detailed cost-saving measures after subdued demand and industry overcapacity sent annual profits tumbling.
Profitability Challenges and Operational Adjustments
The British firm, which supplies products for residential, commercial and public spaces, has exited unprofitable operations and right-sized its manufacturing capacity as part of its efforts to restore profitability.
Future Profitability Outlook
Marshalls, however, maintained its 2026 profitability growth expectations despite uncertainty about how the Middle East conflict might affect consumer sentiment and supply costs.
Key Financial Highlights
Dividend Reduction
• Proposed full-year dividend of 6.7 pence per share, down from 8.0 pence in 2024
Profit Decline
• Adjusted pre-tax profit fell 16% to 43.7 million pounds in 2025 amid affordability pressures in UK housing sector and the construction market's worst downturn since the global financial crisis
Cost-Saving Initiatives
Operational Exits and Savings
• Cost reduction programme, including exit from UK quarried natural stone processing, expected to deliver 11 million pounds annualised savings by end-2026
Market Activity Trends
• Market activity in early 2026 remained consistent with late 2025, though affected by persistent rainfall
Capital Reallocation
• Company reallocating capital from slower-growth activities to business units best positioned to deliver earnings growth
(Reporting by Raechel Thankam Job and Neeshita Beura in Bengaluru; Editing by Nivedita Bhattacharjee)
