UK's Marshalls reports higher profit on cost cuts, says market recovery unlikely in 2026

Aug 10 (Reuters) - British landscaping and roofing products supplier Marshalls reported a 13.2% rise in first-half adjusted pretax profit, helped by tight cost controls, but said it does not expect any material market recovery this year.

Here are some more details:

• As Britain grapples with contracting residential and commercial construction due to rising inflation and a surge in raw material prices, Marshalls has been exiting unprofitable operations and right-sizing manufacturing capacity to shore up profits.

• "We have also responded to cost inflation in a disciplined way, using targeted commercial actions, close customer engagement and cost control against a backdrop of external volatility," Chief Executive Simon Bourne said in a statement.

• For the first-half ended June 30, the company's adjusted pre-tax profit rose 13.2% to £24.9 million ($33.60 million), particularly helped by recovery at its Landscaping Products unit, which had been pressured by falling demand for maintenance work as well as a rise in competition.

• The supplier of products for residential, commercial and public spaces reaffirmed its full-year and medium-term targets. According to company-compiled consensus estimates, Marshalls is expected to report a full-year pretax profit of £49.4 million.

• The company said it expects market conditions to remain subdued with no material recovery in end-market demand during 2026.

• Marshalls' shares were down 2.6% in early trading.

($1 = £0.7411)

(Reporting by Neeshita Beura in Bengaluru; Editing by Ronojoy Mazumdar)