Our 5 year Strategy maintains the objective of delivering sustainable growth. The main elements are:
- Continued focus on organic growth and investment - capital expenditure of £30 million planned for 2021 to drive growth
- Increasing momentum in the delivery of the digital strategy through continued investment and continuous improvement
- Increase in research and development and new product development to drive sales growth
- Renewed focus on increasing the profitability of the Emerging UK Businesses
- Continuing to target selective bolt-on acquisition opportunities in New Build Housing, Water Management and Minerals
- Continued focus on customer service, brand, operational and manufacturing excellence and procurement efficiency
- Maintaining a strong balance sheet, a flexible capital structure and a clear capital allocation policy
- Maintaining a 2 times earnings cover dividend policy, enhanced by supplementary dividends
Our vision is to create better spaces and futures for everyone; socially, environmentally and economically.
Our continuing mission is to deliver sustainable growth through a brand that drives customer specification of innovative product solutions for the built environment.
- Brand preference for product specification
- Digital transformation
- New product development
- Logistics excellence
- Sustainable materials supply
- Customer centricity
- Operational excellence
- Growth in the emerging businesses
The impact of COVID-19 has presented many challenges, but we remain confident that our strategy is the right one, with built-in flexibility such that the pace of delivery can be adjusted for external uncertainties. We remain committed to the 2025 Strategy as our driver for growth.
• To strengthen the Marshalls brand by developing systems-based solutions and by promoting ESG values.
• To maintain a progressive dividend policy and a dividend cover of 2 times over the business cycle.
• Improvements in operational efficiency across the manufacturing network.
• Full integration of CPM and Edenhall acquisitions.
• Strong growth in HY2 has supported the Group’s market capitalisation (£1,495 million at 31 December 2020).
• Continued to exceed CPA growth forecasts.
• To deliver long-term sustainable shareholder value.
• Digital transformation.
• To promote strong ethical, environmental and corporate social responsibility principles.
• To deliver new and innovative product solutions.
• To invest in IT and lead the digital transformation.
• To drive through sustainable cost reductions.
• Continued to invest in R&D during 2020. Sales of new products in the core business were 8 per cent of total revenue in 2020.
• Increased the pace of the digital strategy in 2020.
• Increase in International sales of 16 per cent in 2020.
• Improve operational efficiency across the manufacturing network.
• Logistics excellence.
- To focus on stakeholder engagement at all levels.
- Sustainable and ethical materials supply – to enable manufacturing flexibility.
- To focus on customer satisfaction.
- To promote integrated product solutions.
- To focus on installer training, marketing and sales support.
- Dedicated “customer experience” team with strengthened relationships.
- 94 per cent customer service KPI.
- New Commercial and Domestic websites.
- New investor relations and sustainability websites.
- 1,900 registered installer teams.
• To focus on the customer.
• To invest in digital technology to improve customer experience.
• Sustainable materials supply.
• To invest in capital expenditure for organic growth.
• To increase sustainable profitability in the emerging businesses.
• To increase new product development.
• Significant growth in key focus areas whilst maintaining operational flexibility.
• Strong growth in New Build Housing revenue.
• Self-help capital investment of £42 million over the last 5 years.
• Re opening of the Maltby site to provide additional capacity.
• To grow our emerging businesses and increase their market share.
• To develop our global supply chain.
• Customer satisfaction – to be thesupplier of choice.
• To lead the market on customer service and product quality.
• To maintain the highest health and safety standards.
• To pioneer the digital standard for our industry.
• Continued development of the Marshalls brand and product range.
• Introduced 132 new product ranges launched in the last 2 years.
• First company in the sector to have emission targets approved by the science-based targets initiative.
• Responsible business and The Marshalls Way.
• ESG principles and responsible business.
• To support the UN sustainable development goals.
• To increase brand preference to drive product specification.
Effective capital structure and control framework
• To maintain a flexible capital structure that recognises cyclical risk, focusing on security, efficiency and liquidity.
• Strong balance sheet with low gearing (26.3 per cent (9.3 per cent pre-IFRS 16)).
• Efficient portfolio of bank facilities with extended maturities and realigned headroom.
• Continued focus on working capital management and efficient inventory control.
• To maintain the target net debt:EBITDA ratio (on a reported, post-IFRS 16 basis) of between 0.5 and 1.5 times over the cycle. On a pre-IFRS 16 basis, this translates into a target of between 0 and 1 times.