MARSHALLS PLC Marshalls plc
2023 Financial Results Review and Outlook
Management actions position the Group well for when markets recover
18 March 2024
Agenda
- First Impressions from Matt Pullen
- 2023 Summary and Financial Results
- Opportunity for Marshalls
- Summary and Outlook
- Q&A
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Matt Pullen, | Justin Lockwood, CFO |
Chief Executive | |
Matt Pullen, Chief Executive
Weak market backdrop impacts on demand and the financial results
My background
- Experience of leading complex businesses in construction
- Career foundation in blue chip FMCG in the UK and Europe
- Strategic foresight
- Transformation and growth
- People leadership
- Enhance stakeholder value
Why did I join Marshalls?
- Strong reputation with leading brands and products
- Track record of profitable growth and market outperformance
- Commitment to decarbonisation
- Opportunity to create further value
Marshalls plc 2023 Financial Results Review and Outlook | 3 |
First impressions and reflections
Presence
and brands
- Leading brands and market positions
- Strengthened through acquisition
- National scale and reach
- Drive towards sustainable solutions
Organisation
people and
culture
- Talented, knowledgeable and experienced leaders
- People are passionate and care
- Strength in Operational Excellence
- Committed to our Customers
Opportunity
to create
value
- Operational leverage from market recovery
- Structural trends related to climate mitigation and adaption
- Developing strong propositions and innovative solutions
Marshalls plc 2023 Financial Results Review and Outlook | 4 |
The Group is well positioned for outperformance in the medium-term
Weak market backdrop impacts on demand and the financial results
- Our near-term markets remain challenging
- Management actions taken in 2023 demonstrate a well- managed and agile business
- More diversified portfolio of products and solutions has increased the Group's resilience in cyclical markets
- Clear opportunity to evolve the business, making the most of structural drivers and market trends
- Well positioned for outperformance in the medium term
Marshalls plc 2023 Financial Results Review and Outlook | 5 |
2023 summary
MANAGEMENT ACTIONS POSITION THE GROUP WELL FOR WHEN MARKETS RECOVER
2023 summary
Management actions position the Group well for when markets recover
Weak▪ Financialmarketresultsbackdropin shortimpacts-term impactedon d mandby weakandmarketthe finaconditionscial results
- Group resilience demonstrably enhanced through Marley acquisition, with exposure to less discretionary RMI, and exit from Belgium
- Action taken to reduce costs, improve agility and manage cash without compromising medium-term capacity
- c.£11 million annualised net cost savings, 40 per cent realised in 2023
- c.£7 million generated from site disposals
- Strong balance sheet - reduction in net debt of c.£18 million
- Dual block plant in St Ives operational; improving capabilities and new product development
- Ahead of Marshalls' carbon reduction target; enlarged Group's targets submitted to SBTi for approval
-
Marshalls' logistics function to be outsourced to Wincanton in H1
2024 - expected to improve service and deliver efficiencies
Marshalls plc 2023 Financial Results Review and Outlook | 7 |
MANAGEMENT ACTIONS POSITION THE GROUP WELL FOR WHEN MARKETS RECOVER
Financial headlines
Revenue £671.2m 7%
Adjusted | £70.7m | 30% |
profit | ||
operating |
PBT | £53.3m | 41% |
Adjusted |
Adjusted basic
EPS
Final proposed dividend
Pre-IFRS
16 net debt
16.7p
5.7p
£172.9m
47%
42%
£17.8
million
Note: Adjusted PBT stated after adding back adjusting items totaling £31.1 million; see page 39 for details
Marshalls plc 2023 Financial Results Review and Outlook | 8 |
Key challenges and management response
MANAGEMENT ACTIONS POSITION THE GROUP WELL FOR WHEN MARKETS RECOVER
2023 challenges
Weak market backdrop impacted demand and the financial results
- Macro-economicenvironment challenging through 2023
- House builders reduced activity levels with progressive slowdown as they worked through order books
- Consumer confidence weak during year with squeeze on disposable incomes reducing private housing RMI activity
- Demand for the Group's products reduced
- Tougher pricing environment - input cost inflation not fully covered by price increases in H2 impacting margins
Marshalls plc 2023 Financial Results Review and Outlook | 10 |
Attachments
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Disclaimer
Marshalls plc published this content on 17 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2024 11:41:05 UTC.
