Marshalls, a UK sustainable solutions manufacturer for the built environment, has unveiled its new strategic focus along with medium-term financial targets at the Capital Markets Event.
The management team, led by chief executive Matt Pullen, chief financial officer Justin Lockwood, and chief commercial officer Simon Bourne, aims to position the company for market outperformance with customers at the centre of its strategy.
The company's new strategy, named ‘Transform and Grow’, is designed to leverage its brand presence, technical and design support, and carbon leadership reputation.
The strategy aligns with the new purpose and vision of the business, "Building Tomorrow's World," which addresses the major drivers shaping the built environment, including climate change and regulatory changes.
The group's business units, including Marshalls Landscaping, Marley Roofing, Viridian Solar, Marshalls Water Management, and Marshalls Bricks & Masonry, have outlined dedicated strategies to deliver market outperformance and sustainable profitable growth.
These strategies are expected to drive the business to achieve an operating margin of 15% and outperform the wider construction market by 2-4% over the medium term.
The group's disciplined capital allocation policy is designed to optimise long-term shareholder value, with annual capital expenditure projected between £20m ($25.28m) and £30m and a targeted return on capital employed of 15%.
Furthermore, maintaining a strong balance sheet is a key priority, with a pre-IFRS net debt target range set between 0.5 times and 1.5 times EBITDA.
Marshalls operates through three trading divisions: Landscape Products, Roofing Products, and Building Products, with a national network of manufacturing and distribution sites across the UK.
Matt Pullen said: "We are excited today to unveil Marshalls' refreshed strategic focus which will deliver a business capable of sustained market outperformance. It is a strategy that builds on the unique set of capabilities that our customers value: our leading brands; best in class technical design and support; and carbon leadership. Our growth will also benefit from the cyclical recovery and near-term structural and regulatory drivers in our end markets.
"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."
