Building products supplier Marshalls has outlined a new business strategy to improve its market position.
The initiative is being spearheaded by Marshalls chief executive Matt Pullen, chief financial officer Justin Lockwood, and chief commercial officer Simon Bourne.
The “Transform and Grow” strategy will position the group’s portfolio of businesses towards customers who value Marshalls’…
- Leading brands
- Technical and design support
- Carbon leadership
While the “Building Tomorrow’s World” portion focuses on major drivers which will shape the built environment in the future:
| · | Long-term growth drivers associated with climate change | |
| o | Green urbanisation | |
| o | Low carbon solutions | |
| o | Water management and drainage
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| · | Near-term structural and regulatory headwinds | |
| o | Investment in UK housing stock | |
| o | Regulation driving energy transition | |
Each of the group’s business units – Marshalls Landscaping, Marley Roofing, Viridian Solar, Marshalls Water Management, Marshalls Bricks & Masonry – will also outline strategies to deliver market outperformance and sustainable profitable growth.
Marshalls’ medium-term financial targets
“The new strategic focus is expected to deliver over the medium term a high-performing business capable of outperforming the wider construction market by between two and four per cent and delivering an operating margin of 15 per cent,” said Marshalls.
- Annual capital expenditure of £20 million-£30 million
- Targeted return on capital employed (ROCE) of 15 per cent
- Net debt target of 0.5 times-1.5 times EBITDA
The group will maintain a disciplined capital allocation policy focused on optimising long-term shareholder value.
For the six months to 30 June 2024, Marshalls posted an increase in pre-tax profit to £21.5 million from £16.7 million as revenue fell to nearly £307 million from £354 million.
A word from the top
“We are excited today to unveil Marshalls’ refreshed strategic focus which will deliver a business capable of sustained market outperformance,” said Pullen.
“It is a strategy that builds on the unique set of capabilities that our customers value: our leading brands; best in class technical design and support; and carbon leadership.
“Our growth will also benefit from the cyclical recovery and near-term structural and regulatory drivers in our end markets.
“Our Transform and Grow strategy has clear potential to drive significant and sustainable long-term shareholder value.
“This is an exciting time for Marshalls, and we are looking forward to sharing our vision and ambition for the future.”
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