UK's Marshalls slashes dividend as weakness in landscaping unit drags annual profit

March 16 (Reuters) - Landscaping and roofing products supplier Marshalls MSLH.L on Monday cut its annual dividend by 16% and detailed cost-saving measures after subdued demand and industry overcapacity sent annual profits tumbling.

The British firm, which supplies products for residential, commercial and public spaces, has exited unprofitable operations and right-sized its manufacturing capacity as part of its efforts to restore profitability.

Marshalls, however, maintained its 2026 profitability growth expectations despite uncertainty about how the Middle East conflict might affect consumer sentiment and supply costs.

• Proposed full-year dividend of 6.7 pence per share, down from 8.0 pence in 2024

• Adjusted pre-tax profit fell 16% to 43.7 million pounds in 2025 amid affordability pressures in UK housing sector and the construction market's worst downturn since the global financial crisis

• Cost reduction programme, including exit from UK quarried natural stone processing, expected to deliver 11 million pounds annualised savings by end-2026

• Market activity in early 2026 remained consistent with late 2025, though affected by persistent rainfall

• Company reallocating capital from slower-growth activities to business units best positioned to deliver earnings growth