Marshalls lays down marker with its new chief

Martyn Coffey joins the Huddersfield-based group from BDR Thermea Group BV, which manufactures and distributes domestic and industrial heating and hot water systems.

The Netherlands-based group, which was formed in 2009 from the merger of Baxi and De Dietrech Remeha, operates in 70 countries and has sales of £1.8bn.

Mr Coffey was divisional chief executive and a member of the management board with responsibility for regions including the UK, France, Germany, Iberia and Italy, which together account for 65 per cent of the group’s profits.

Mr Coffey, who was formerly CEO of the Baxi Group, said: “I am delighted to be joining Marshalls with its outstanding reputation for integrity and product excellence.

“The company is well positioned as the market leader in its field and has significant potential for growth in the UK, as well as internationally.

“I look forward to working with Marshalls’ strong executive team to realise that potential for all its stakeholders.”

Mr Coffey will become CEO designate on September 9 and is set to take over full operational responsibility from outgoing CEO Graham Holden on October 10 after a month of intensive induction.

Analysts responded positively to the news. Gavin Jago, of Shore Capital, told the Yorkshire Post: “Look at his background – he has international experience which is a revenue stream that Marshalls has been growing over the last couple of years.”

He said Marshalls is the market leader in the UK for landscape products and in spite of cost cutting and tough construction market has remained profitable and is in a strong position to benefit from an economic recovery in the UK and from prudent expansion in Europe. The group owns two concrete block paving plants in Belgium, which it bought in 2011.

Mr Jago added: “Dare we dream of an economic recovery in the UK? Marshalls is absolutely set to benefit from economic recovery and profits could rise materially from any volume uplift.”

Andrew Allner, chairman of Marshalls, said: “The board is extremely pleased to have recruited Martyn as Marshalls’ next chief executive.

“He has an outstanding track record as a proven chief executive in growing businesses and brings significant international experience.

“He joins a team at Marshalls with a very good understanding of the UK market and a board with substantial City and investor understanding.”

Marshalls, which operates its own quarries and manufacturing sites throughout the UK, said last month underlying revenues fell six per cent during the 19 weeks to May 10, down from £109m to £103m.

The group added that it was making progress with the development of its international business, with revenue to date increasing by seven per cent.

The international business makes up five per cent of group sales.

Mr Holden, who was appointed CEO in 2004, will retire next April. He is credited with steering Marshalls through the worst economic downturn in living mem- ory.