Marshall of Cambridge has disposed of its investment arm, Martlet Capital, representing a further streamlining of its portfolio of businesses. The portfolio’s fair value at June 2021 was c. £10m and we understand the disposal will generate a small profit on disposal.
The purchaser is a new venture backed by EMV Capital and Saranac Partners and led by Robert Marshall, previously the Group’s Vice Chairman and CEO. However, the disposal does not mark an end to Marshall’s investment in new technology and the development of innovative products and services, as is demonstrated by the establishment of the Futureworx business accelerator unit.
Disposing of Martlet Capital highlights a clearer focus by the recently restructured Board. The loss-making Aeropeople, the Group’s sole exposure to civil aerospace, was disposed of in April, removing a business that had proven very time-consuming for management. The Group is now focused on four distinct and profitable areas: Aerospace and Defence, Property, Motor Retail and Fleet Solutions.
Shareholders funds of 420p/share represent a 67% premium to the recent share price trading levels, which are also materially below our sum-of-the-parts based fair value per NVPO share of 611p.