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%
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
- 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, 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
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