Investment Case

Priorities for capital

Data for year ending 31st December 2021.
Organic growth

Capital investment remains core to strategic growth.

Capex of £35 million planned for 2022.

Delivery over the last 4 years
2018
2019
2020
2021
R&D and NPD
  • Continued focus on R&D and NPD.
  • New product ranges.
  • Digital strategy progressing well - e-trading platform established.
Delivery over the last 4 years
2018
2019
2020
2021
Ordinary dividends

2021 final dividend of 9.6 pence per share

Total dividend (interim and final) of 14.3 pence per share

Delivery over the last 4 years
2018
2019
2020
2021
Selective acquisitions

Good pipeline of potential acquisitions

Target selective bolt-on acquisition opportunities in New Build Housing and Water Management

Delivery over the last 4 years
2018
2019
2020
2021
Supplementary dividends
Supplementary dividends when appropriate. Discretionary and non-recurring.
Delivery over the last 4 years
2018
2019
2020
2021

At a glance

Data for year ending 31st December 2021

Strong track record

  • From 2016 to 2021 we have seen strong cumulative annual growth rates
  • We have shown resilience throughout the pandemic and have made a strong recovery from COVID-19
Revenue growth
8.2%
compound annual growth rate 2016-2021

Supportive UK construction market fundamentals

  • Winter 2021 forecast of total construction output continues to anticipate robust recovery from COVID-19 challenges in 2020
  • New Build Housing and Infrastucture are key sectors for Marshalls. Private Housing RM&I is the main driver for UK Domestic
Total construction
4.3%
CPA output growth forecast for 2022

Diversified group with strong market position

Diversified end markets, including Public Sector and Commercial, Domestic and International. 

2021 revenue %
Public sector and commerical - 66%
Domestic - 28%
International - 6%

Efficient, nationwide manufacturing network

  • The Group operates manufacturing plants, quarries and distribution sites across the UK and in Belgium
  • Unique national network ensures proximity to customers and an efficient logistics footprint
c.95%
of UK population within two hours delivery time

Logistics excellence and sustainable supply strategy

Logistics excellence
  • Flexibility to meet the delivery lead-time requirements of our customers
  • 230+ fleet of vehicles with a broad range of capability to meet every delivery requirement
Sustainable supply strategy
  • Majority of raw materials sourced in the UK
  • Co-ordinated innovation in concrete mix designs
60%
cement substitution for block paving products

ESG market leadership

Sustainability and carbon reduction commitments embedded in strategy

Responsible business practices

100% of natural stone products now have Ethical Risk Index scores

Sustainable product development
30%+
reduction in plastic consumption since 2013

Strong balance sheet and cash generation

Strong and efficient balance sheet

Strong cash generation, with OCF:EBITDA historically in excess of 90%. The 2021 ratio is lower than usual due to to the operating decision to increase investment in imported stone to ensure ongoing supply availability.
Strong cash generation
80%
OCF:EBITDA

Clear and consistent capital allocation policy

Focus on New Product Development

132 new product ranges launched in last 2 years

Organic growth investment - St Ives dual block plant
c.£24m
investment incorporating the latest advanced technologies

Focused growth strategy

Strategic goal to become the UK's leading manufacturer of products for the built environment
  • Strategic goal underpinned by eight growth pillars
  • Enabled by people and talent development
  • Policy that dividends will grow in line with earnings - 2 times cover