DAVY VIEW

The priority for Marshalls this year is to deliver on cost savings and stabilise earnings expectations. First half results point to encouraging progress. Marshalls is seeking to improve operational execution with a more agile approach and faster decision making. Helped by cost savings, the interim results are better than expected and full year expectations are unchanged. Based on the H1 result, we believe the latter is a credible stance and that Marshalls is on course to increase adjusted pre-tax profit from £44m to its guidance of circa £50m this year.