First step in creating long-term value

The backbone of success for Marshall of Cambridge (MCH) has been the Group’s desire to adapt and stay ahead of its rivals by being prepared to move decisively where strategic opportunities present themselves. As evidenced last week, when MCH announced that by 2030 it was intending to relocate its division MADG from its 900 acres site at Cambridge Airport to new, state-of-the-art facilities at one of 3 possible venues: Cranfield, Duxford airfield or RAF Wyton.

This move would  allow MADG to more easily service its widening international client base, whilst freeing up vital capital to further invest in its cutting edge aerospace/defence capabilities, along with MCH’s other interests. This could also lead to perhaps hundreds of new highly skilled jobs being created. 

Equally, the plan should provide the local community with an urgently required source of quality residential houses (up to 12,000), commercial property (5m sq ft) and transport solutions. A ‘win-win’ for the shared benefit of all stakeholders. 

One must be aware that there are still many hurdles to climb before this can become reality, such as obtaining full planning permission, choosing MADG’s next home, relocating employees/equipment, and finally redeveloping the Cambridge site. 

This is why at this stage, we conservatively retain our 533p/share valuation and financial forecasts. Albeit, we certainly recognise the significant potential of the announcement to create additional long-term value.