Marshall of Cambridge
Founded in 1909, Marshall of Cambridge (Holdings) Ltd is a private, family owned company, employing 5,786 staff. In 2018, the business generated >£80m of EBITDA on revenues of £2.5bn, and has significant organic opportunities ahead. Not only, accelerating expansion at its leading aerospace/defence (MADG) and motor retail businesses (MMH - 64.46% owned).
Significant contract win
Marshall of Cambridge has announced that it has secured a meaningful, five-year contract within its Aerospace and Defence Group (MADG). The contract is to supply maintenance, support and training to the Cameroon Air Force’s fleet of C-130J Hercules transport aircraft. It is noteworthy, both in scale and for the addition of the 17th customer of the airframe, again highlighting the Group’s enduring expertise.
The contract is for an initial five years, with all in-depth maintenance work undertaken at the Group’s facilities in Cambridge. In addition, MADG will provide both technical support and training under the terms of the contract, with the latter enabling the Cameroon Air Force to deliver front-line maintenance and support in Cameroon.
Adding the Cameroon Air Force contract takes the number of MADG’s C-130J maintenance related and international customers to 17, supporting the largest number of operators globally and highlighting MADG’s expertise on the airframe. MADG also has a significant maintenance contract with the UK’s Royal Air Force fleet of C-130 aircraft, which includes the enhanced Centre Wing Replacement programme (CWRP) from 2017. Under the terms of the revised Strategic Defence & Security Review, the life of the 14-strong fleet was extended to 2035 last year.
The ongoing transformation of the Group began with the restructuring of the MADG business, the commencement of land sales and the subsequent long-term development/relocation of the Group’s asset base. There is no change to our view of fair value being 532p per NVPO share.