Marshalls (MSLH) retained its tight rein on costs during the first half, which meant underlying operating margins were maintained at 13.7 per cent despite last year’s dilutive acquisition of bricks manufacturer Edenhall. The public sector and commercial market led the way in driving revenue growth – itself reporting a 10 per cent organic rise – as the landscape product specialist is targeting new build housing, rail and water management.
Management is keen to press on with investing in the business to save further costs. This year, £23m has been earmarked for spending on areas including improving manufacturing efficiency, integrating artificial intelligence into its systems and product research and development. The group is also keen to improve the profitability of its emerging UK businesses.
Analysts at house broker Peel Hunt expect adjusted pre-tax profits of £69m and EPS of 28.3p for the year to December 2019, up from £62.9m and 25.9p, respectively, last year.
| MARSHALLS (MSLH) | ||||
| ORD PRICE: | 616p | MARKET VALUE: | £1.23bn | |
| TOUCH: | 615.5-616.5p | 12-MONTH HIGH: | 694p | LOW: 400p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 139p* | NET DEBT: | 35% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 244 | 32.5 | 13.2 | 4.0 |
| 2019 | 280 | 37.1 | 15.2 | 4.7 |
| % change | +15 | +14 | +15 | +18 |
| Ex-div: | 17 Oct | |||
| Payment: | 04 Dec | |||
| *Includes intangible assets of £90m, or 45p a share | ||||
