DAVY VIEW

Marshalls held its adjusted profit before tax steady in 2024 despite further downward pressure on revenues. With revenue trends more encouraging, the current expectation is for a return to underlying earnings growth this year, albeit a relatively modest improvement off what is a low base. This is already reflected in our adjusted pre-tax profit estimate for this year of £55.6m (2023 result: £52.2m), which is consistent with the Visible Alpha consensus estimate. More positively, Marshalls continued to lower net debt last year, while its ‘Transform & Grow’ strategy should position the group to benefit from improving activity levels.