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(Alliance News) - Marlowe PLC on Wednesday said profit jumped in the first half of its financial year, following strong revenue growth from acquisitions.
The London-based software and services firm reported a 6.1% rise in pretax profit to GBP1.7m in the six months to September 30, from GBP1.6 million the year before.
Revenue surged 66% to GBP222.0 million from GBP134.5 million, which Marlow said was driven by organic growth of 8% as well as the contribution from acquisitions.
The company completed three bolt-on acquisitions in the year-to-date, investing GBP6 million at "attractive multiples". Integration of these acquisitions, alongside those made in the latter half of last year, is on track and the businesses are trading in-line with pre-acquisition expectations.
Marlowe's Governance, Risk & Compliance division recorded organic revenue growth of 7%, driven by new business, increased customer retention rates, cross-selling and price increases across the business lines.
The Testing, Inspection & Certification division experienced 9% organic revenue growth, with growth within Water & Air Hygiene and Fire Safety & Security. Marlowe said this division recorded new customer wins, upsold additional capabilities to existing customers and focused on customer retention.
Adjusted earnings before interest, tax, depreciation and amortisation increased 93% to GBP26.3 million from GBP13.6 million.
Looking ahead, Marlowe said trading for the full year is expected to be slightly ahead of expectations, with continued high single digit organic growth.
Marlowe expects to meet a run-rate target of GBP500m of revenue and GBP100m of adjusted Ebitda by financial 2024.
Marlowe shares were down 12% to 642.45 pence on Wednesday morning in London.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
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