Marshalls to chop 250 jobs as lack of latest builds hits landscaping gross sales
The enterprise will shut its factory in Carluke in Scotland, after like-for-like income fell by 13% for the primary six months of the 12 months and profit was down by 26.7%.
It is anticipated that the closure will save Marshalls £9 million. The job cuts will come on prime of 150 layoffs introduced final 12 months.
Marshalls mentioned this was resulting from “persistent weakness” in new construct housing and residential renovations. It expects this weak point to proceed as excessive rates of interest proceed to discourage housebuilding.
The enterprise mentioned: “The sustained high levels of inflation, increasing interest rates and weak consumer confidence means that the board anticipates the group’s performance in the second half will be below its previous expectations.”
In current months, new builds have fallen at rates only seen during the pandemic and the aftermath of the global financial crisis, as fast-rising rates of interest discourage new begins.
“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,” the group mentioned.
Investec analyst Aynsley Lammin famous that the revenue warning comes after a robust run for the shares. They had been up 21% prior to now month earlier than falling by 9% to 251.2p in the present day.
He mentioned: “After the recent bounce in the shares, this update will come as a disappointment and the scale of the full year downgrade will be a negative surprise.”