{"id":20180,"date":"2023-07-31T14:32:29","date_gmt":"2023-07-31T21:32:29","guid":{"rendered":"https:\/\/essential.construction\/news\/marshalls-to-cut-250-jobs-as-sales-slump\/"},"modified":"2023-07-31T14:32:34","modified_gmt":"2023-07-31T21:32:34","slug":"marshalls-to-cut-250-jobs-as-sales-slump","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/marshalls-to-cut-250-jobs-as-sales-slump\/","title":{"rendered":"Marshalls to cut 250 jobs as sales slump"},"content":{"rendered":"

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The job losses come on top of 150 redundancies at the end of last year.<\/p>\n

Marshalls confirmed the cuts in a gloomy trading update today which warned performance in the second half of the year will be below market expectations.<\/p>\n

For the six months to June 30 2022 group revenue fell by 13% with the biggest falls at landscape products which was hit hard by its exposure to new build housing and domestic refurbishment work.<\/p>\n

Marshalls Building Products delivered a more resilient performance, supported by demand for bricks, masonry and mortars, offset by weaker volumes in drainage and aggregates, which are correlated to the lower number of new housing starts.<\/span><\/p>\n

The recently acquired Marley Roofing Products saw mixed demand across its product offering with revenue down 7% overall to \u00a393m.<\/span><\/p>\n

Marshalls said the job cuts and closure would save \u00a39m annually.<\/p>\n

It added: \u201cThe Board has reduced its capital expenditure plans without impacting critical projects, is executing a programme of surplus land disposals, and has continued to focus on efficient working capital management<\/span> in order to reduce the Group\u2019s net debt.\u201d<\/span><\/p>\n

Net debt stood at \u00a3185m at the end of June compared to \u00a3208m the previous year.<\/p>\n

The update said: \u201cWhilst previously anticipating a recovery in market conditions in the second half of the year, the Board is now of the view that an improvement in the second half performance is unlikely given the macro-economic backdrop. \u00a0<\/span><\/p>\n

\u201cIn addition, the Board has chosen to reduce production volumes with a negative impact on operational efficiency in order to manage working capital.\u00a0 <\/span><\/p>\n

\u201cTaking these factors together, and in the absence of a recovery in demand in the Group\u2019s end markets, the Board believes that the result in the second half will be markedly weaker than the first half, and consequently expects to deliver a result for the full year that is lower than its previous expectations.\u201d<\/span><\/p>\n<\/p><\/div>\n