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I tend to agree, but in the current atmosphere the slightest negative means share prices tumble. They seem to have recovered slightly through the day, and good to see directors buying, even if it was relatively low volumes.
There are so many great businesses in real bargain territory at the moment!
overreaction, there's absolutely nothing in the trading update to support this 20% drop.
A onside are Contractors, where does this sit in relation to Marley who manufacture roofing products
By the way the markets have moved today one could suggest that the demise of Avonside is a win for Marley, and therefore Marshalls. Who said that Marley traded with Avonside? Perhaps they are just competitors?
Not sure on that one, Marley are a Solid Company, with Edenhall as well and the drainage business, they can now do the full shell with the houses and the keening and flagging. But that’s moving forward and not shorter term.
Does anyone know Marshalls' exposure to Avonside? Were their invoices insured? Did they insist on c.o.d? I have confidence in Marshalls' management but Marley is a recent acquisition!
Exactly right, import all over the world and now looking at new places and leaving China and India.
and inflationary cost pressures are the reason for the drop here. The COVID DIY boom is finished , everyone has done their patio, driveway etc at the time when no one could travel. The biggest competitor to the domestic construction market are travel agents. But now we are in the midst when everyone is tightening their purse strings so having your driveway or patio done won't be high on the priority list and given the choice most people will opt for a holiday if they can afford too.
Marshalls import various traded goods, including porcelain paving and natural stone. Countries of origin include India, China, Vietnam, Turkey and Brazil. Read their Modern Slavery policy for more info.
I think the comment was about increasing transportation costs in general, see the Q&A section:
https://finance.yahoo.com/news/edited-transcript-mslh-l-earnings-080000165.html
What imported products.
Made In Britain | Hard Landscaping Products - Marshallshttps://www.marshalls.co.uk › about-Marshalls › made-i...
British made, low carbon, products for the hard landscaping industry, from a British business who manufactures 99% of our products in mainland Britain.
I would expect that applies to clay for brick and tile making, obviously not the fuel for firing the kilns.
Massively inflated prices to import and less customers due to price rises.
It's all in the report. Current mcap is roughly 830m, from the top of my head something like 1 year revenue + current assets add up to that amount? I believe severe recession is factored in as the business is massively undervalued! Importing products has gone "through the roof" because of problems with logistics and difficulties on the energy market.
How can they factor in a recession when they don’t know how severe it will be. Also, I know why the net debt has increased and they need to bring that down, that is less likely if we go into a severe recession and that’s not forgetting the price of raw materials and the cost of importing products now as gone through the roof. Also delivery times are not been met like they were, so we are in for a rocky 6-12mths and let’s hope the winter isn’t to harsh.
Yes a solid business, I'm in the building game, they make the best pavers and have done for years,
now they'v added Marley, Eden Hall and the escalation in the price of building materials I can't see any way forward other than North
Common sense and the stock market never did go hand in hand. Herd mentality.
The debt increased due to the acquisition of Marley, that's totally normal. You need to borrow money to expand the business. The group is profitable at least so far that's why recession is factored in and now the stock is simply drifting with the market. The SP is down from 850 to 320 in just 1 year, that's a massive drop.
This recession is coming at it won’t be pleasant and it’s very unlikely that it’s factored in. Marshalls net debt is £250,000000, last year it was £50,000000 2021. On the plus side, Marshalls have acquired the brick company Eden Hall and the large drainage Company, then this year Marley with roofing tiles etc. Marshalls is now in a Strong position further down the line to capitalize on the market in the future.
you need enough cash to survive a recession and MSLH is a solid business. Some sort of a massive recession is already factored in the SP. I can see it going as low as 200-250 if recession fears last.
We are heading towards a massive recession in my eyes and they can moth ball sites in a breath in a recession. I’ve seen it happen before
just come across this share and have read the recent posts on here...there is so much building going on in manchester and i guess all over the country....
I bought in last week at 268p.
If this drops any further, I am going to buy some more for the following reasons:
1. Good financial position. I can forgo the divi in favour of a higher sp
2. Directors have bought recently at a higher price than me from the open market - what do they know that I don't? (lots, obv)
3. Revenues have grown since the Marley acquisition
4. The industry that they operate in is understandably reliant on consumer sentiment - but landscaping is not going to disappear overnight.
I bought Barratts at 100 when the market was spooked and have done well at their current sp. I hope MSLH also proves to be a resilient investment in the longer term.
I will certainly be topping up if the sp falls any further.
Hello Goldenyears, I agree on the divis, most likely they wanted to prevent the SP from drifting further down but it seems that the bearish sentiment is there because of a slowdown expected in the construction sector over the coming months.
Writing down goodwill doesn’t really mean anything anyway. It’s not a tangible number
What matters is cash and profits
While it might be that Marshalls overpaid (I bought after the deal), there isn’t a huge amount of debt. The consumer side might slow but the construction side is driven by a lack of bricks and products etc. even if the construction market slows it doesn’t mean we are at parity
Also the story of levelling up is likely to rear its head and push more public works spending
If Marshalls has issues so will smaller suppliers. I’d rather Marshalls not raised the divi and kept the cash for any further M&A as I imagine there could be some good additional bolt ons to come