Marlowe Regulatory News (MRL)

28 March 2023

Marlowe plc

Capital Markets Day and Trading Update

Marlowe plc ("Marlowe" or the "Group"), the leader in business-critical services and software which assure regulatory compliance, will be hosting a virtual Capital Markets Day today along with Q&A at 14:00 BST for investors and analysts.

Integration: Building a Platform for Growth 

At the event, senior executives and operational management will provide an update on:

· How the Group drives improved organic growth and margin expansion through the integration and restructuring of acquisitions

· Marlowe's underlying highly cash generative profile and the Group's forward expectations for significant free-cash flow generation

· The resilience of the Marlowe model and the growth of the business and its markets

Please register for the live webcast here.

A video replay of the presentation will be available on the Marlowe website at www.marloweplc.com.

Group Trading

The Group has continued to make strong financial and strategic progress during the year ending 31 March 2023:

· Trading for the year ending 31 March 2023 is expected to be in line with market expectations with further significant growth in revenues, adjusted profits and adjusted earnings per share. Revenues are expected to be in the region of £475m for the full year, c.50% up on the prior year

· The Group expects to deliver high single digit organic revenue growth and has seen accelerating momentum in the second half of the year (H123 revenues: £222.9m). This organic momentum is expected to continue into FY24

· The Group's run-rate revenue and adjusted EBITDA have grown to £493 million and £87 million respectively; on track to achieve the FY24 run-rate financial targets of £500 million of revenue and £100 million of adjusted EBITDA on an organic basis

· The short-term increase in accrued income in Testing, Inspection & Certification (TIC) division at the six months ending 30 September 2022 has returned to normal levels during the second half, comparable with that seen at the beginning of the financial year

· Key integration programmes across Occupational Health and Compliance eLearning within Governance, Risk & Compliance (GRC) and Water within TIC are well-progressed

· The Group completed one bolt-on acquisition in H2 in TIC, acquiring PCS Consultants to deepen its scale in Water & Air for a total consideration of £9 million

· During the second half the Group settled £18 million of deferred consideration. Incorporating this and the acquisition of PCS, year-end net debt (excluding lease liabilities) is expected to be in the region of £170 million (H123 net debt: £156.2 million) in line with our expectations. Looking forward, the Group expects increasing levels of free cash flow to be deployed into appropriately managing leverage and selective bolt-on M&A 

For further information:

About Marlowe plc

Marlowe is a leader in business-critical services and software which assure regulatory compliance. The company was formed to create sustainable shareholder value through the acquisition and development of businesses that provide regulated safety and compliance services and software. It is focused on compliance software, eLearning, health & safety, employment law & HR compliance, fire safety & security, water & air hygiene and occupational health services - all of which are vital to the wellbeing of its customers operations and are invariably governed by regulation. Marlowe currently provides software to over 1 million users and services to over 25% of Britain's commercial premises. The Group provides customers with a single outsourced, nationwide, provider of a range of regulated compliance and safety solutions. Our customers can be found in office complexes, high streets & leisure facilities, manufacturing plants and industrial estates, and include thousands of SMEs, local authorities, facilities management providers, multi-site NHS trusts and FTSE 100 companies.