UK’s Marley Group plans flotation on London Stock Exchange
By Rob Griffin
09:43, 16 September 2021
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.
“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.
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