19 November 2024
('Marshalls' or 'the
Group')
CAPITAL MARKETS
EVENT
NEW STRATEGY - "TRANSFORM AND
GROW" - SET TO DELIVER
MARKET OUTPERFORMANCE OVER
THE MEDIUM-TERM
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:
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Long-term growth drivers associated
with climate change
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Green urbanisation
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Low Carbon solutions
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Water management and
drainage
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Nearer term structural and
regulatory headwinds
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Investment in UK housing
stock
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Regulation driving energy
transition
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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.
Enquiries:
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Marshalls plc
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Matt Pullen, Chief
Executive
Justin Lockwood, Chief Financial
Officer
Simon Bourne, Chief Commercial
Officer
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+44 1422
314777
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Hudson Sandler (Financial PR)
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Mark Garraway
Harry Griffiths
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+44 20
7796 4133
marshalls@hudsonsandler.com
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Notes to editors:
About Marshalls plc:
Established in the late 1880s,
Marshalls plc is a leading UK manufacturer of sustainable solutions
for the built environment. It operates through three trading
divisions: Landscape Products; Roofing Products; and Building
Products. At a Group, divisional and brand level, Marshalls'
strategy centres around its customers who value its unique set of
capabilities, namely leading brands, best in class technical and
design support and carbon leadership. This is underpinned by
business wide enterprise excellence, leadership in ESG governance
and standards and its people, organisation, and culture.
The Group operates a national
network of manufacturing and distribution sites. Marshalls is
committed to quality in everything it does, including the
achievement of high environmental and ethical standards and
continual improvement in health and safety performance. Its
strategic goal is to become the UK's leading manufacturer of
products for the built environment.
Forward-Looking Statements:
Any statements in this release, to
the extent that they are forward-looking, are subject to risk
factors associated with, amongst other things, the economic and
business circumstances occurring from time to time in the markets
in which Marshalls operates. It is believed that the expectations
reflected in these statements are reasonable, but they may be
affected by a wide range of variables, which could cause actual
results to differ materially from those currently anticipated. More
information about the factors that may affect Marshalls'
performance is contained in the Annual Report to shareholders for
the year ended 31 December 2023.