September 2019

Industry News
MARLEY EMBARKS ON
NEXT CHAPTER
Inflexion Private Equity has acquired
Marley from Etex. The investment is being
made by Inflexion Buyout Fund V,
Inflexion’s dedicated mid‐market fund.
Paul Reed, Managing Director at Marley, said:
“This is an exciting and defining move for
Marley and is testament to the hard work the
team has put in transforming our business
model as well as investing in our brand. This
acquisition from our parent company will help
propel the business into a very exciting, fast
growth future.
“Inflexion’s industry knowledge means it truly
understands our sector, while its experience
in helping expand businesses organically and
acquisitively make it an excellent fit for our
next stage of growth,” Paul Reed added.
Simon Turner, Managing Partner at Inflexion,
commented: “The team at Marley have done
a phenomenal job in creating not only a truly
market-leading product, but also a resilient
and differentiated business model in an
industry with very attractive dynamics. The
brand is exceptionally well regarded, and we
look forward to drawing upon our industry
experience as we partner with management
to build on Marley’s strong market position
and product range.”
David Speakman, General Manager at Marley,
concluded: “We are extremely proud of our
long heritage and are very excited by the
opportunities to grow the company further.
Inflexion’s industry knowledge gleaned
through its investment in builders merchants
Huws Gray means they truly understand our
sector.”
CMOSTORES.COM SEES FURTHER GROWTH
Online construction materials retailer
“Online retail has revolutionised the high street
cmostores.com says it is continuing to see and the many benefits of internet shopping –
rapid expansion with 2018 sales increasing by including improved product choice as well as time
44%, continuing a trend of record growth. and cost savings – are increasingly being taken
into more traditional and trade sectors by
Consolidated group revenue rose 220% in just
forward-looking e-commerce businesses,”
three years from £12.1m at the end of 2015 to
explained Andy Dunkley, CEO of cmostores.com.
£38.6m in the year to 31 December 2018. The
“As a result, we’re seeing phenomenal growth
business is now predicting further turnover growth
with our disruptive model already having a major
to around £50m in the current financial year and
impact on more traditional builders’ merchants.
will soon be launching two new superstores.
“Over the last year, we’ve been continuing to
Over the last 12 months, the Plymouth-based
invest in developing our operational and executive
company has seen a 35% increase in visits to its
team to ensure that our business is scalable with
four online superstores which supply in excess of
further significant expansion expected as we
70,000 products across the build cycle to both trade
focus on enhancing our trade division. As a
and DIY customers. The business is also expanding
business, we are well on track with our plans and
its trade offering so that professional contractors
have an ambitious vision to establish ourselves
can now benefit from trade credit, exclusive
as the leading brand in online construction
discounts, rebates and rewards, in order to drive
products.”
new accounts and sales from larger building firms.
VAT CHANGES NEED TO BE DELAYED
A coalition of the major trade
edge, particularly small businesses.
bodies in the construction sector
Brian Berry, Chief Executive of the
has demanded that the Government
Federation of Master Builders, said:
must delay the implementation of
“The fact that 15 of the leading
“damaging VAT changes” in the
construction trade bodies have come
sector in a letter to the Chancellor.
together to speak to the Government
The letter calls on the Chancellor to
push back the implementation of
reverse charge VAT, due on 1st
Above: Brian Berry, FMB.
with one voice on this issue shows
the extent to which we are concerned.
We urge the Government to rethink the
October, by at least six months due to the fact
that the timing of these changes could not be
worse given they are due to take place just before
the UK is expected to leave the EU, quite possibly
timing of these changes and announce a delay of
at least six months. With a potential no-deal
Brexit also due to take place in October, the
timing could not be worse.”
on ‘no-deal’ terms; reverse charge VAT will be yet
Steve Bratt, CEO of the ECA Group, said: “The
another burden on construction employers on top
Government needs to urgently reconsider the
of other pressures facing the industry, such as
timing of their reverse VAT introduction. With
material price rises, increased pension
insolvencies already at such a high level, and a
contributions and skills shortages; and the
no-deal Brexit on the horizon, these changes
changes could lead to a loss of productivity,
could hit business cashflow at a pivotal time for
reduced cashflow and in the worst cases, lead to
industry.”
a hit on jobs, tipping some companies over the
10 TC SEPTEMBER 2019