CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

UK’s Marley Group plans flotation on London Stock Exchange

By Rob Griffin

09:43, 16 September 2021

Photo of a roof
Marley Group plans IPO – Photo: Shutterstock

Marley Group, a specialist in pitched roof systems, has announced its intention to float on the London Stock Exchange.

The company, which is Britain’s largest manufacturer of roofing tiles, said it was considering an initial share sale as part of its plan to grow the business.

In a statement, Marley said it would target a free float of at least 25% of its issued share capital, with additional details to be given if it proceeds.

Pitched roof systems

The Staffordshire-based company manufactures and supplies its systems to builders, merchants, roofing merchants and roofing contractors.

Demand for its products is driven by the resilient and growing renovation, maintenance and improvement market from where an estimated 53% of the group’s revenues are generated.

The company has eight production and distribution facilities, with additional production capacity available for growth in what the directors believe to be a “capacity constrained” market.

Rapidly ageing housing stock

According to group chairman Paul Lester CBE, Marley is a “premium building materials brand... with a near 100-year heritage".

He believes the company’s proposition is underpinned by significant market demand, thanks to the UK’s rapidly ageing housing stock.

US100

14,503.60 Price
+1.460% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 3.0

Gold

1,965.83 Price
+1.320% 1D Chg, %
Long position overnight fee -0.0185%
Short position overnight fee 0.0103%
Overnight fee time 21:00 (UTC)
Spread 0.33

Oil - Crude

71.06 Price
-2.050% 1D Chg, %
Long position overnight fee -0.0153%
Short position overnight fee -0.0066%
Overnight fee time 21:00 (UTC)
Spread 0.03

XRP/USD

0.53 Price
+0.680% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.00462

“The structural undersupply of new homes, which is high on the political agenda and supported by multiple government policies, is also a key demand driver and one that plays extremely well to Marley’s long track record of innovation and sustainability,” he said.

Financial performance

The statement also claimed the company enjoyed “strong margins and high cash generation”, with the benefit of strong demand and a premium pricing strategy for its products.

In the full year 2020, Marley Limited’s underlying earnings before interest and taxes or EBIT margin was 19.7%, having increased from 18.8% the previous years.

The company also claims to have a strong track record of sustainable innovation and a clear roadmap in respect of its future ESG credentials.

A clear strategy for growth

Marley plans to grow organically – through market development and innovation – as well as inorganically through acquisitions and brand expansion.

“Supported by its track record of profitable growth, the group is targeting medium-term organic revenue growth of 10%,” it said in the statement.

Read more: Supply issues and higher prices hit UK construction firms

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading