Robust demand within the public sector and commercial market last year meant Marshalls (MSLH) managed to offset flat domestic sales. The former – which accounted for more than two-thirds of sales – grew revenue by 15 per cent, or 8 per cent excluding the Edenhall acquisition.
Improving the margin through cost efficiencies, which included reducing the number of manufacturing sites and establishing larger facilities, and launching higher-margin products helped offset some of the drag from domestic sales. Cash generation remained solid, with the landscape product supplier reporting an impressive operating cash conversion ratio of 97 per cent, up from 92 per cent last year. That prompted management to declare a 4p a share special dividend for the third consecutive year.
House broker Peel Hunt forecasts adjusted pre-tax profits of £75.5m and EPS of 30.9p, rising to £82.5m and 33.8p the following year.
| MARSHALLS (MSLH) | ||||
| ORD PRICE: | 642p | MARKET VALUE: | £ 1.28bn | |
| TOUCH: | 639-642p | 12-MONTH HIGH: | 876p | LOW: 536p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 147p* | NET DEBT: | 20%† | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)** |
| 2015 | 386 | 35.3 | 14.3 | 7.0 |
| 2016 | 397 | 46.0 | 19.0 | 8.7 |
| 2017 | 430 | 52.1 | 21.5 | 10.2 |
| 2018 | 491 | 62.9 | 26.3 | 12.0 |
| 2019 | 542 | 69.9 | 29.3 | 14.35 |
| % change | +10 | +11 | +11 | +20 |
| Ex-div: | 04 Jun | |||
| Payment: | 30 Jun | |||
| *Includes intangible assets of £96m, or 48p a share **Excluding special dividends of 4p a share in 2017, 2018 and 2019 | ||||
| †Includes lease liabilities of £41.3m | ||||
