Marshalls PLC on Tuesday said it will miss its full-year outlook amid lower building levels and a drop in like-for-like revenue.

Shares were down 9.2% at 265.56 pence each in London on Monday morning.

The West Yorkshire-based natural stone and concrete manufacturer said its revenue for the four months that ended April 30 was £227 million, up 12% from £202 million a year prior. This includes the benefit of its acquisition of Marley Group PLC in April last year, Marshalls said.

On a like-for-like basis, however, revenue fell by 14% due to a reduction in new house building, an uncertain economic climate, and ‘continued weakness’ in private housing repair, maintenance and improvement activity.

Marshalls also noted that in the first quarter of the year, National House Building Council new housing starts were 27% lower than in 2022, which impacted the performance of its reporting segments.

Looking ahead, Marshalls said trading in the year to date has been ‘weaker than originally anticipated’ in light of the challenging economic climate. It expects to deliver full-year results that are lower than its original forecast, but added it is well-placed to deliver profitable long-term growth when market conditions improve.

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