Investment Case

Priorities for capital

Data for year ending 31st December 2018.
Organic growth
Capital investment in growth projects. Plan £23 million in 2019.
Delivery over the last 4 years
2016
2017
2018
2019
R&D and NPD
Increase research and development and new product development.
Delivery over the last 4 years
2016
2017
2018
2019
Ordinary dividends
Maintain dividend cover of 2 times earnings over the business cycle.
Delivery over the last 4 years
2016
2017
2018
2019
Selective acquisitions
Target selective bolt-on acquisition opportunities in New Build Housing, Water Management, Landscape Protection and Minerals.
Delivery over the last 4 years
2016
2017
2018
2019
Supplementary dividends
Supplementary dividends when appropriate. Discretionary and non-recurring.
Delivery over the last 4 years
2016
2017
2018
2019

Our Investment Case

Data for year ending 31st December 2018.

Growth agenda

Proven record of sustained growth with 5-year CAGR growth in revenue of 10 per cent and PBT of 37 per cent.
Revenue
£491.0m +14%

Strong market position

Wide market reach targeting growth areas including New Build Housing, Road, Rail and Water Management. Wideranging mineral reserves with the “Marshalls Stone Standard“ quality mark.
Operating profit margin
13.2% +6%

Target acquistions

The acquisitions of both CPM and Edenhall will enable the Group to offer a broader product choice that complements our offering in targeted growth areas of Water Management and New Build Housing.
CPM
Acquired 19 October 2017
Edenhall
Acquired 11 December 2018

Innovation and new products

The continued focus on innovation and new product development ensures we focus on manufacturing and
materials technology capabilities.
Number of new product ranges
67
launched in the current innovation cycle

Diversified group

Serving Public Sector, Commercial and Domestic end markets. These have historically proved to offer security due to their counter-cyclical profiles.
Public Sector & Commercial (% of Group revenue)
66%
revenue growth of 20% in 2018

Strong asset base and resources

Well invested manufacturing plants with continuing emphasis on high quality maintenance, technology improvements and reinvestment. Capital investment of £29.2 million in 2018.
Self help capital investment in 2018
£17m
£30.7 million over the last 3 years

Sustainability

The Group has a sustainable business plan and has set KPIs for the key areas of this plan. Sustainability and corporate responsibility are key elements of the Marshalls culture. Delivering sustainable shareholder value is a key part of Group strategy.
ROCE
23.3%
like-for-like basis

Culture

The Group’s core values of leadership, excellence, trust and sustainability underpin our culture along with our key objective of doing business responsibly. The corporate culture is embedded into our engagement with stakeholders.
Health and Safety
61%
reduction in working days lost since 2015 (%)