Marshalls to cut 250 jobs as sales slump

Grant Prior 9 months ago
Share

Building products manufacturer Marshalls is cutting 250 jobs and closing its factory in Carluke, Lanarkshire as the slowing housing market drags down sales.

The job losses come on top of 150 redundancies at the end of last year.

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.

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.

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.

The recently acquired Marley Roofing Products saw mixed demand across its product offering with revenue down 7% overall to £93m.

Marshalls said the job cuts and closure would save £9m annually.

It added: “The 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 in order to reduce the Group’s net debt.”

Net debt stood at £185m at the end of June compared to £208m the previous year.

The update said: “Whilst 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.  

“In addition, the Board has chosen to reduce production volumes with a negative impact on operational efficiency in order to manage working capital. 

“Taking these factors together, and in the absence of a recovery in demand in the Group’s 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.”

Latest news

Carpenter killed by falling timber frame panels

Court fines specialist contractor £8,000 after site tragedy
58 mins ago

Road sweeper specialist files administration notice

Go Plant lodges court notice
5 hours ago

Anglian Homes rides in to finish crashed Everest contracts

Rival doubled glazed window specialist commits to complete orders
4 hours ago

Final work starts to connect super sewer to London system

End in sight with 1.5m thick concrete wall to be demolished to link-up to Lee Tunnel sewer system
5 hours ago

Legal challenge launched against £1.5bn A66 dualling

Balfour Beatty, Kier and Keltbray must now await outcome of court challenge
5 hours ago

John F Hunt wins 24-storey Battersea tower

Specialist to carry-out demolition, enabling works and RC frame construction
1 day ago

William Hare wins steelwork on £500m Broadgate towers

Specialist to work on 2 Finsbury Avenue with McAlpine
1 day ago

McAlpine appoints MD to grow ventures business

Owain Thomas will build on private rental and healthcare development successes
23 hours ago

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
1 day ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
2 days ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
1 day ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
2 days ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
1 day ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
1 day ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
2 days ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
2 days ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
3 days ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
2 days ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
2 days ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
2 days ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
3 days ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
3 days ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
3 days ago

Six civils clients to switch to low carbon concrete and steel

National Highways, Northumbrian Water and Sellafield sign fresh decarbonising pledge
4 days ago

Fortem extends homes repair deal across Birmingham

Willmott Dixon owned firm adds another two years to deal worth £170m
3 days ago

Kier wins £118m civil service Darlington hub

Work is expected to start towards the end of this year
4 days ago

Green light for 34-storey Digbeth apartments tower

480 flats will be delivered for Clarion housing association
3 days ago

LHC starts race for major retrofit and decarb framework

Hunt starts for firms to help with 6.1m social homes upgrade target
4 days ago

Windows giant Everest crashes into administration

Around 350 jobs at risk while hunt starts for a buyer to salvage business
4 days ago

Green light for £500m Newcastle health complex

Mixed use scheme will promote healthy living across all stages of life
4 days ago

Contractor services