City File: Turning point

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The Independent Online
Marley, the building products and plastic car parts group, has closed a number of plants in the past year, slicing about pounds 30m off its fixed and variable costs. This should help to push pre-tax profits up to about pounds 12m for the half year, from pounds 9.7m a year ago, when Marley reports on Tuesday.

The cost-cutting regime was introduced by chief executive David Trapnell, appointed last year to strengthen the management team. The group has also seen a modest recovery in the US and New Zealand construction markets, though the car parts business remains flat as a battery on a winter's day.

Marley is trading on one of the cheapest multiples in the sector and is ideally placed to benefit from a pick-up in the economy. At 165p, the shares have some way to rise.

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