Having achieved phase 1 of its growth strategy by returning to pre-recession profitability, landscape specialist Marshalls (MSLH) has set out growth plans that will take it though to 2020. These include an additional £15m investment programme that will deliver annual cost savings of £5m, and a plan to achieve sales growth of at least 10 per cent a year in its smaller businesses such as Street Furniture, Mineral Products and Stone Cladding.
Marshalls pushed operating profit ahead by nearly half to £37.5m thanks to its high level of operational gearing and strengthening demand. Operating margins rose from 7.1 per cent to 9.7 per cent, and the return on capital employed jumped from 12.5 per cent to 19 per cent, driven by higher profits and tighter capital management.
Public sector work now accounts for two-thirds of group turnover, and sales grew by nearly 11 per cent. Growth on the domestic side was more restrained at 3.6 per cent, mainly because of constraints on installation capacity, while sales outside the UK grew by 2.6 per cent, and now account for 5 per cent of group sales.
Analysts at Peel Hunt are forecasting adjusted pre-tax profit for the year to December 2016 of £43m and EPS of 17.4p, up from £35.3m and 14.8p in 2015.
| MARSHALLS (MSLH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 320.4p | MARKET VALUE: | £639m | |
| TOUCH: | 318-321p | 12-MONTH HIGH: | 380p | LOW: 250p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 96p** | NET DEBT: | 6% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 334 | 13.7 | 3.8 | 5.25 |
| 2012 | 301 | -12.2 | -3.3 | 5.25 |
| 2013 | 307 | 13.0 | 6.9 | 5.25 |
| 2014 | 359 | 22.4 | 10.1 | 6.00 |
| 2015 | 386 | 35.3 | 14.3 | 7.00* |
| % change | +8 | +57 | +41 | +17 |
Ex-div: 2 Jun Payment: 8 Jul *Not including special dividend of 2p **Includes intangible assets of £40m, or 20p a share | ||||
