Marshalls’ full-year results, published in March, contained both a dividend cut for 2023 and a profit warning for 2024. The share price has fallen to levels no higher than those seen nearly 20 years ago. This sounds like very unpromising material indeed, but it is exactly why the landscaping, building and roofing products supplier is so interesting – and the shares catch the eye for three reasons. First, the share price slide means a lot of bad news is already baked into the valuation, which seems to give the company little credit for any potential recovery in sales, earnings or dividends. Marshalls made nearly 30p in earnings per share in 2019, just before the pandemic, and the dividend reached 15.6p a share in 2022. A return to anything like those levels would leave the stock looking cheap on both in terms of profits and yield. Second, the balance sheet is sound, and this should see the company, which is based in Elland, West Yorkshire, through the current, undeniably difficult economic environment. The net debt position of just more than £200m, adjusting for cash, leases and a pension surplus, represents less than one third of shareholders’ funds. Interest was covered more...