Building material supplier Marshalls (MSLH) is delivering on both the organic and acquisitive aspects of its ‘2020 growth strategy’. On an underlying basis, trading is in line with expectations in the year to date and so broker Numis is still forecasting a 7 per cent increase in revenue in 2017. Beyond that, sales and earnings are expected to be enhanced by the acquisition of industrial materials group CPM.
IC TIP:
Buy
at
463p
Based in the UK, CPM has been selected to supply bespoke materials for major infrastructure projects including Hinkley Point and HS2. In 2016, the group reported £51.2m of revenue and £4.6m of pre-tax profit. Marshalls will spend £38m of its existing cash reserves on the acquisition.
