In major news on UK stocks, shares of Marshalls PLC (GB:MSLH) tumbled after the company forecasted a weak outlook for 2024 following a significant decline in its 2023 earnings. The company’s adjusted pre-tax profits decreased by 41% to £53.3 million compared to the previous year. The company now anticipates a slower market recovery and projects lower revenues for 2024, although profits are expected to remain at similar levels to 2023. Additionally, Marshalls reduced its full-year dividend by 42% to 5.7p, leading to a total year dividend decline of 47% to 8.3p.
MSLH stock is trading down by 8.7% at the time of writing.
Marshalls is a manufacturing company of building, roofing, and hard landscaping products.
2023 Annual Results Snapshot
Marshalls’ revenues reached £671.2 million in 2023, down 7% from the previous year due to the impact of a challenging macroeconomic environment on the company’s key end markets. This impacted the company’s sales volumes and profitability during the year. Nonetheless, in response, the company reduced its manufacturing capacity and expenses, prioritizing effective cash management. Marshalls expects annual savings of £11 million, with around 40% realized in 2023. This makes the company well-positioned to bounce back once the markets recover fully.
Meanwhile, Marshalls has observed continued weakness since the second half of 2023. Revenue in the first two months of 2024 was lower than in 2023. It is expected that many challenging factors, like inflation and reduced demand, will subside in the second half of 2024, leading to a recovery in the UK construction industry.
What is the Stock Price Forecast for Marshalls?
According to TipRanks consensus, MSLH stock has received a Moderate Buy rating based on one Buy recommendation from Berenberg Bank. The Marshalls share price target is 420p, which is 62.5% above the current trading levels.
