Marlowe raises buyback plan as profits top forecasts

(Sharecast News) - Marlowe has raised its share buyback programme after delivering a "strong" performance over the financial year ended 31 March, with profits expected to be ahead of market forecasts.

The company, which provides services that ensure regulatory compliance like installing fire detection systems, said continuing operations delivered £305m in revenues and £32.5m in adjusted EBITDA over the year - more or less in line with market expectations.

However, both figures were down substantially from last year after the £430m divestment of selected governance, risk and compliance (GRC) software and services assets and the demerger of its Occupational Health division.

However, adjusted pre-tax profit is estimated to come in at £18.5m, comfortably above the £16m consensus forecast.

As part of its GRC divestment, Marlowe returned £150m to shareholders by way of a special dividend last July, and launch a £75m share buyback programme which is now nearing completion. On Monday, the company announced plans to return a further £15m to shareholders.

In other news, Marlowe also announced the £6.2m acquisition of SludgeTek, an Andover-based specialist provider of waste management and manufacturing services.

"The acquisition further strengthens Marlowe's position as a leading provider of wastewater rental solutions and is highly complementary to the group's existing capabilities," the company said.