Capital Markets Event
Marshalls announces Transform and Grow strategy targeting market outperformance of 2-4% and 15% operating margin.
- Operating margin target 15%
- Market outperformance target 2-4%
- Annual capital expenditure £20-30m
- Target return on capital employed 15%
- Pre-IFRS net debt target range 0.5-1.5x EBITDA
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Marshalls, a leading manufacturer of sustainable solutions for the built environment, is today hosting a Capital Markets Event.
The management team, led by Matt Pullen, Chief Executive, Justin Lockwood, Chief Financial Officer, and Simon Bourne, Chief Commercial Officer, will set out a new strategic focus along with medium-term financial targets centred on market outperformance.
Transform and Grow
With customers firmly at the centre of its refreshed strategy, Transform and Grow will position the Group's portfolio of businesses towards customers who value its unique set of capabilities: leading brands; best-in-class technical and design support; and reputation for carbon leadership.
The Group's strategy is, in turn, guided by a new purpose and vision for the business.
Building Tomorrow's World reflects the major drivers which will shape the built environment over the years ahead and which Marshalls is strongly positioned to leverage:
| · | Long-term growth drivers associated with climate change |
| o | Green urbanisation |
| o | Low Carbon solutions |
| o | Water management and drainage |
| · | Nearer term structural and regulatory headwinds |
| o | Investment in UK housing stock |
| o | Regulation driving energy transition |
Alongside the new Group strategy, each of the Group's business units: the brand powerhouses of Marshalls Landscaping and Marley Roofing; and growth engines of Viridian Solar, Marshalls Water Management and Marshalls Bricks & Masonry, will outline dedicated strategies to deliver market outperformance and sustainable profitable growth.
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.
The Group will maintain a disciplined capital allocation policy focused on optimising long-term shareholder value. The strategy is capital-lite with annual capital expenditure of between £20 million and £30 million and a targeted return on capital employed of 15 per cent.
A strong balance sheet will also be a key priority, with a pre-IFRS net debt target range of between 0.5 time and 1.5 times EBITDA.
Matt Pullen, Chief Executive, commented:
"We are excited today to unveil Marshalls' refreshed strategic focus which will deliver a business capable of sustained market outperformance. 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."
A live webcast of the presentation including Q&A will be held today at 2:00 pm for investors and analysts and will be available via our website at https://www.marshalls.co.uk/ or on https://brrmedia.news/MSLH_CMD_24.
This will be available for playback after the event.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.