The recent Operating Review of trading up to the end of FY22 was positive, with good growth in revenues and a strong uplift in profitability and cash generation. An update covering Q1 was also recently released, which highlighted that trading remained in-line with budgetary expectations.
Proceeds from the disposal of MMH provide the Board with the resources to build the ‘new’ Marshall Group, with five-year plans in place for each division. Enhanced centres of excellence to provide a strong foundation for growth over the long-term have either recently completed or are in the planning stage.
In the UK the move to Cranfield Airport / University has received outline planning permission, allowing the Group to begin detailed design work on phase one; the new manufacturing facility for Land Systems in Canada became available during Q1; and we are encouraged by the new contracts secured in recent months at Marshall Fleet Solutions.
There was £129m of net cash held at the FY22 year end, and using a sum-of-the-parts assessment we estimate a fair value for the Group of £263.6m. That equates to 446p per NVPO share, versus a recent price of 375p.