Pitched roof systems specialist Marley Group (Marley) has revealed that it is considering an initial public offering (IPO) for admission of its shares to the premium segment of the official list of the FCA and to trading on the main market of the London Stock Exchange.
The company is targeting a free float of at least 25% of its issued share capital immediately following admission and expects it would be eligible for inclusion in the FTSE UK indices post-Admission.
As the largest manufacturer of roofing tiles in Great Britain, Marley has an estimated market share of approximately 21%. This strength is evident in the Group’s financial performance, which has remained resilient throughout the economic cycle, and even performing well during the pandemic compared to the general construction industry.
Marley’s underlying EBIT margin grew from 18.8% in FY19 to 19.7% in FY20, despite significant macroeconomic uncertainty arising from both Brexit and the COVID-19 pandemic.
Moreover, since COVID-19, the Group has seen a strong recovery, with volumes returning to 2019 levels and underlying EBIT margin growing further to 24% in the six months to June 2021, with profitability sustained despite raw material price increases.
Now with its financial success, Marley has strategic plans for both organic growth, through market development and innovation, and inorganic growth, through acquisitions and brand expansion.
The Group is targeting medium term organic revenue growth of 10%, as well as a sustainable underlying EBIT margin of 20% and 80% cash conversion through the cycle.
Commenting on the consideration, Paul Lester, chairman of Marley Group, said: “Led by a highly experienced management team, the Group has delivered a resilient financial performance throughout the economic cycle, resulting in industry leading margins and high cash generation. This, coupled with a clear strategy for growth through further innovation, acquisitions and brand extension, means that the Group is well placed to build on its strong momentum to date.”
David Speakman, chief executive of Marley, added: “Our business combines the most comprehensive pitched roofing systems available and well-invested, freehold production sites across the country, which can provide significant additional capacity as needed. This, combined with a number of positive market dynamics, gives us the confidence to pursue our growth agenda and we see multiple opportunities for both organic and inorganic expansion.”
>> You can read more about Marley in the news, including its ‘Safe in the Sun’ campaign, here.