Marshalls Sets New Targets with Transform and Grow Strategy

MARSHALLS has unveiled new targets with a ‘Transform and Grow’ strategy, aiming to improve its financial performance.

The owner of Marley and building supplier is today setting out a new strategic focus along with medium-term financial targets centred on market outperformance.

The new strategy is led by the management team, including Matt Pullen, Chief Executive, Justin Lockwood, Chief Financial Officer, and Simon Bourne, Chief Commercial Officer.

The company says Transform and Grow will position the Group’s portfolio of businesses towards customers who value its unique set of capabilities. These it lists as leading brands; best-in-class technical and design support; and reputation for carbon leadership.

The new vision for the business, dubbed ‘Building Tomorrow’s World’ reflects built environment drivers over the years ahead as Marshalls sees them.

The drivers identified by the business are:

• Long-term growth drivers associated with climate change

– Green urbanisation

– Low Carbon solutions

– Water management and drainage

• Nearer term structural and regulatory headwinds

– Investment in UK housing stock

– Regulation driving energy transition

Each of the Group’s business divisions, including Marley Roofing and Viridian Solar, will describe strategies to deliver market outperformance and profit growth.

Medium-Term Targets

Marshalls is targeting outperforming the wider construction market by between 2-4% and an operating margin of 15%.

Annual capital expenditure is restricted to £20-£30 million with a targeted return on capital employed of 15% and a pre-IFRS net debt target of 0.5-1.5 times EBITDA.

Matt Pullen, Chief Executive, said: “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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