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