19th Nov 2024 10:32
(Alliance News) - Marshalls PLC on Tuesday unveiled its new strategic focus and medium-term targets at its capital markets event.
The Yorkshire, England-based landscaping products maker, said the strategy is designed to position the company for long-term market outperformance.
Marshalls also set its financial targets for the medium term, aiming to outperform the wider construction market by 2 to 4% and achieve an operating margin of 15%.
The company plans to adopt a capital-lite strategy, with annual capital expenditure of between GBP20 million and GBP30 million, and a target return on capital employed of 15%.
Additionally, Marshalls aims to maintain a balance sheet with a pre-IFRS net debt range of between 0.5 times and 1.5 times earnings before interest, taxes, depreciation, and amortisation.
In prior trading updates, Marshalls stated that it expects its calendar 2024 profit to align with its previous guidance, though specific figures have not been disclosed.
The company, which owns brands like Marshalls Landscaping and Marley Roofing, has introduced its new "Transform and Grow" strategy. This strategy focuses on capitalising on long-term trends such as green urbanization and low-carbon solutions. By leveraging its strengths in branding, technical expertise, and carbon leadership, the company aims to target key customer segments and drive sustainable growth.
Chief Executive Officer Matt Pullen said: "We are excited today to unveil Marshalls' refreshed strategic focus which will deliver a business capable of sustained market outperformance. Our 'Transform and Grow' strategy has clear potential to drive significant and sustainable long-term shareholder value."
Shares in Marshalls were up 2.5% at 332.50 pence in London on Tuesday morning.
By Eva Castanedo, Alliance News reporter
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