RNS Number : 2114C Marshalls PLC 12 April 2013 Marshalls plc Sale of quarries and associated aggregates business Marshalls plc ("Marshalls"), the hard landscaping specialist, is pleased to confirm that, further to the announcement on 10 April 2013, it has now reached agreement with Breedon Aggregates England Limited, a wholly owned subsidiary of Breedon Aggregates Limited ("Breedon"), and exchanged contracts to sell the aggregate quarries detailed below for a cash consideration on completion of £17.5 million. The final consideration will be up to £19.0 million dependent on certain conditions subsequent. The assets being sold comprise quarries solely supplying aggregates, sand and gravel. The Group has retained all of its dimensional stone quarries some of which produce aggregate as an ancillary product. The quarries sold are the Group's freehold and leasehold quarries at Clearwell, near Lydney, Gloucestershire, which produce primarily high quality limestone aggregates and the Group's sand and gravel quarries located at Dunsville, near Hatfield, South Yorkshire, Astley Moss in Greater Manchester and Mold in North Wales which operates under the Lloyds Sand and Gravel trading name and the business carried on from these quarries. Also included is an option to develop sand and gravel resources near Saredon, Staffordshire. These quarries currently supply aggregate materials to the construction sector, including materials used by Marshalls in the manufacture of its range of concrete products. For the year ended 31 December 2012, the operating profit generated from the operations carried on at these quarries was £1.1 million, based on an annual turnover of £10.0 million, of which £8.8 million came from sales outside the Group. As at 31 December 2012 the value of the gross assets disposed of was £14.9 million. Completion is subject to Breedon completing its placing announced on 10 April 2013 and the receipt of signed documentation incorporating landlords' consents already given in principle relating to the assignment of the Astley Moss and Clearwell leases. The proceeds of the sale will initially be used to reduce Marshalls' Group borrowings. Commenting on the transaction, Graham Holden, Chief Executive, said "Marshalls has been a niche player in the UK aggregates market for a number of years and, while the business is profitable, it remains ancillary to the core operations where our growth focus lies. The consideration received by Marshalls from the sale of these quarrying operations will initially be used to reduce net debt and we consider it is in the best interest of shareholders."
24 Jan '13
and 2.6mill big trades?...buy/sell?...
5 Jan '13
"Despite the challenging economic background, Marshalls continues to target growth markets within the Public Sector and Commercial end market," the company statement said. "Street furniture, water management and internal natural stone flooring are seen as particular growth areas, in addition to the continuing commitment to home, rail and retail." A reorganisation of the firm in response to continuing uncertainty about the market environment had reduced both fixed costs and net debt, Marshalls said. Cash realised from surplus property sales, accelerated inventory reduction and reduced capital expenditure is ahead of plan, it added. This resulted in year-end net debt falling from £77m in 2011 to £64m in the last year. This puts the company on track to meet its target net debt to earnings before interest, tax, depreciation and amortisation ratio of two times cover by the end of 2013.
5 Jan '13
Marshalls, the landscape and garden products firm, said a mixture of appalling weather and tough trading led to a seven per cent drop in revenue over the last year. Current group trading is in line with expectations, the firm added in the update. Revenue for the year ended 31st December 2012 was £309m, down from £334m the year before. Sales to the Public Sector and Commercial end market, which represent approximately 63% of Marshalls' sales, were down 6%. Sales to the Domestic end market, which represent approximately 32% of sales, were down 12% compared with the prior year period. The group's international business continued to make steady progress, the company said, and was now approaching 5% of group sales.
4 Jan '13
Upgraded by N+1 Singer (to buy from hold), TP upped to 115p from 85p. (Brief news item here via of Broker Forecasts: http://www.brokerforecasts.com/news/article/articleId/4514357) Also from broker forecasts (but no link as its behind their pay-wall): - Numis reiterated add rec TP unchanged at 110p - Peel Hunt reiterated buy rec TP unchanged at 117p - Panmure reiterated hold rec TP unchanged at 95p - Northland reiterated hold rec with 95p TP
8 Nov '12
Marshalls: Panmure Gordon keeps hold rating and 95p target.
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