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Before all the collapse of the markets the so sat at £940 million, then the share price started drifting down bit by bit and then the Marley buy out, I’ve never noticed this go on to Marshalls value or maybe I missed it, I think Marshalls value reached a low of £430 million
It has been included, the valuation is for the group! It's difficult to say what exactly has caused such a collapse in the SP but we're still in a downtrend. Marshalls raised some funds at 650 just over a year ago and now 650 seems further than the moon. Possibly some big players didn't like the debt situation and simply exited when profits began to shrink. One long term solution would be reducing debt to manageable levels in a high interest rate environment.
Which is now down to £671 million, they bought Marley roof tiles for £530 million, im curious to know, why this hasn’t been added to the Marshalls value, even though it would be less than purchase price.
Your right, Marley was bad timing, but the last piece of the Jigsaw for Marshalls
I'll keep acquiring more shares whilst people are willing to sell into poor sentiment. Despite short-term rises in inflation and interest rates, we've still got a massive undersupply of housing and there is broad political support to increase this (especially within the likely Labour government). Marshalls has come out of these down cycles before and is a well-managed company. In hindsight, their timing of the Marley acquisition was unfortunate and perhaps they overpaid, but it's a good strategic move.
Management took on too much debt at the wrong moment, same as builders did in the run up to 2008 housing crash. Anything property related is a screaming short, builders, materials, agents, they’re toast, housing downturns are long cycles and this one only just getting going, brexit basket case U.K. sucking in inflation with a weak currency, terrible politics and parabolic interest rates, it writes itself. U.K. will be in hardcore recession 4th quarter so I’d be buying in the money puts on all this with expiry next summer.
I took a loss on these at £3. Id suggest forterra than marshalls. Less exposure to RMI or general “fixing up”
I see forterra as more likely for a bid as completed it capex and there is a natural defence from euro bricks been priced out of market
Still paying dividends .A good time to buy maybe? Think I'll dip a toe in here and see how it goes.
Tough times in the economy at present and paid over the odds for Marley in reflection, bad timing and hindsight. Marley been the last part of the Jigsaw to enable Marshalls to have the complete package now. Kirbs, paving, drainage, bricks & Masonry division and lastly Marley roof tiles.
Not surprising given the stock performance. Lost 50% since last AGM.
WOW nearly 25% against remuneration report!!!!!!!
MSLH appear to be a company that face blips along the way that just look bigger than many other companies face. I am a long term holder (> 5 years) and was up several 100% at the highs. Now the price is back to just above my initial entry point. The dividends have been great, but the capital appreciation has completely (almost!) disappeared now. The good times will no doubt come again ONE DAY.
Yeah doing ok atm. Was really impressed with management at the last update
Some largish buy orders going through. Someone smells recovery or maybe hoping predator emerges. Capt Birdseye!!!
I bought this a little early last year but I’m not too worried and probably should have topped up. Instead I’ll wait until we are fully out of the woods re inflation
One thing I like here is this a really well ran business. I was really impressed with the last analyst presentation. Really well invested business and well ahead on ESG and carbon etc
Paying down debt too is good but not out of the woods yet
End of Q1 and back to the January price levels. I would hope that we will be higher by the end of the year, but as per usual the income will help while we wait.
I like the cash generated. Net debt down £17m from half year add back £14m dividends = £31m generated in a difficult six month.
Still 13% to go to my buy in price but happy this is safe and one for the bottom drawer
Things have improved a tad now and even the house builders are starting to be considered long term value. Will we see further improvement as the builders potentially gain popularity again? I hope so as MSLH have been bashed down a lot and I hope they will recover to their highs.
You're quite right. Most now bought out by private equity groups. Only a matter of time for Marshalls I fear. Whilst the domestic landscaping market is dead, demand for roof tiles (Marley) and facing bricks (Edenhall) still fairly bouyant so that will help prop up the numbers but for how long? Once there is a downturn in the housing market and developers reduce new build rates then Marshalls are in trouble.
Interest rates, debt, UK recession and high energy prices are obvious headwinds for Marshalls but arguably largely priced in. Marshalls is an endangered species. The rest of the listed UK building materials sector got taken over ages ago: remember BPB, Blue Circle, Redland, RMC, Tarmac, Rugby, Steetley, Ibstock and Pilkingtons. Somehow Marshalls has survived. But with the share price having halved and then almost halved again this year plus sterling weakness, you wonder for how much longer. And its bombed out market cap includes Marley. The current Chair was Chair of Fenner, another bombed out established British company with niche expertise, when it was taken over for a fancy price by Michelin which astonished everybody.
With the domestic market as dire as it is right now I'm expecting redundancies and possible mothballing of manufacturing plants before long.
"Could see this sub a quid."
Never.
Porsche when you coming back on GSK page we missing you i kown gsk didnt go to sub 12 pound like you was so confident it would but never mind but you was right about aviva being the best income share on the market aviva is a cash machine you got that one right
This has a ton of debt at a floating rate, expect a capital raise/dilution. Could see this sub a quid.
It’s inevitable that redundancy’s and maybe the mothball of certain sites will ensue, to correct the loss in trade.