Marshalls plc, the Elland, West Yorkshire-based stone and landscaping firm has set a new strategy and medium-term financial targets as it attempts to get business back on track after its shares halved in value over the past three years. 

“The new strategic focus is expected to deliver over the medium term a high-performing business capable of outperforming the wider construction market by between two and four per cent and delivering an operating margin of 15 per cent,” the company said ahead of a presentation to investors on Tuesday. 

“The Group will maintain a disciplined capital allocation policy focused on optimising long-term shareholder value. The strategy is capital-lite with annual capital expenditure of between £20 million and £30 million and a targeted return on capital employed of 15 per cent. A strong balance sheet will also be a key priority, with a pre-IFRS net debt target range of between 0.5 time and 1.5 times EBITDA.”

 Matt Pullen, Chief Executive, said: “”Our Transform and Grow strategy has clear potential to drive significant and sustainable long-term shareholder value. This is an exciting time for Marshalls, and we are looking forward to sharing our vision and ambition for the future.”