Marshalls PLC (LSE:MSLH)'s shares fell 7.5% to 255.40p after it announced plans to cut 250 jobs and warned performance in the second half will be below its previous expectations.
In a trading update for the six months to 30 June 2023, the building materials supplier said this reflected sustained high levels of inflation, increasing interest rates and weak consumer confidence.
Marshalls expects revenue for the six-month period of £354mln, up 2% on last year’s £348mln, but down 13% on a like-for-like basis.
Adjusted pre-tax profit is expected to be around £33mln, down from £45mln last year.
Marshalls has closed its factory in Carluke, reduced shifts and capacity in other facilities, and restructured its commercial team, actions aimed at managing cash.
The measures are expected to save £9mln annually with around 40% of this benefit delivered in 2023.
Peel Hunt plans to reduce its 2023 estimates by 24%, and 2024 by 25%. It has cut its price target to 310p from 380p but retains a 'buy' rating.