Building materials firm Marshalls has warned it expects the industry to remain “subdued” over the first half of 2024 and see a “slower” recovery than previously expected.

It came as the London-listed firm revealed a slump in profits and revenues for last year, and downgraded forecasts for 2024.

In order to help reduce its costs, Marshalls said it closed and mothballed factories and reduced shifts in other facilities in 2023, in a move which cut 330 jobs during the year.

The group said this has helped the business save £11 million a year.

Bosses said the company will continue to come under pressure from the weak market, as developers slow down their building work.

New chief executive Matt Pullen said: “In the short term, markets are expected to remain challenging, with continued weakness in the first half of the year followed by a progressive recovery in the second half as the macro-economic environment improves.

“This recovery is however expected to be slower and more modest than previously anticipated.”

The company said revenues in the first two months of 2024 were lower than over the same period in 2023 as weak conditions continued.

As a result, it said sales for the full year are set to be “lower than expected” and profits are now expected to remain roughly flat.

With clear long-term structural growth drivers and attractive market growth opportunities, the group is well positioned for relative outperformance in the medium term, and this will underpin a material improvement in profitability as end markets recover

In the stock market update, Marshalls revealed that adjusted pre-tax profits slid by 41% to £53.3 million in 2023 compared with the previous year, as it was knocked by the slowdown in the construction sector after interest rates increased.

It also revealed that revenues declined by 7% to £671.2 million for the year.

Mr Pullen added: “The board remains confident that actions taken to improve efficiency and flexibility, together with a more diversified and resilient portfolio, have strengthened the group.

“With clear long-term structural growth drivers and attractive market growth opportunities, the group is well positioned for relative outperformance in the medium term, and this will underpin a material improvement in profitability as end markets recover.”