Marshalls PLC (LSE:MSLH) has reported that a downsizing effort announced at the half-year stage has now concluded but that scope for further cuts remains.
Having closed its factory in Carluke and announced job reductions previously, the building materials firm estimated these would lead to savings of around £9 million for the full year.
“Management has balanced the need to reduce capacity and the cost base in the short-term while retaining the flexibility to increase production when demand recovers,” the group said in a trading update on Wednesday.
Marshalls did acknowledge that there was potential for further cuts in a bid to continue boosting savings.
“Management continues to review opportunities to improve efficiency without compromising longer-term capacity flexibility,” the statement added.
Group revenue fell 12% to £528 million over the first nine months of the year, with Marshalls’ landscape, building and roofing product divisions all penning negative growth on a like-for-like basis.
This was as expected, Marshalls said, prompting the firm to hold full-year guidance.
Net debt fell year on year to £190 million at end September, “reflecting the cash generative nature of the business and management's focus on working capital”.
“The board's ongoing priority is to reduce leverage and it remains confident of reporting a reduction in net debt at the full year,” Marshalls added.