September 2019

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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 <strong>2019</strong>
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September 2019

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