LONDON (ShareCast) - (Sharecast News) - Health, safety and compliance service specialist Marlowe reported solid financial and strategic progress on Tuesday, for the financial year about to end.
The AIM-traded company said in a capital markets day update that trading for the 12 months ending 31 March was set to be in line with market expectations, with a significant increase in revenue, adjusted profits, and adjusted earnings per share.

Revenue for the full year was expected to be around £475m - a 50% increase from the previous year.

The group said it was expecting to deliver high single-digit organic revenue growth, with accelerating momentum in the second half.

First half revenue was reported to be £222.9m, with the organic momentum set to continue into the new, 2024 financial year.

The firm's run-rate revenue and adjusted EBITDA, meanwhile, had grown to £493m and £87m, respectively.

Marlowe said it was on track to achieve its 2024 run-rate financial targets of £500m of revenue and £100m of adjusted EBITDA, on an organic basis.

The company also noted that the short-term increase in accrued income in the testing, inspection and certification (TIC) division at the half-year on 30 September had returned to normal levels in the second half, comparable with that seen at the beginning of the financial year.

Additionally, key integration programmes across occupational health and compliance e-learning within governance, risk and compliance (GRC), and water within TIC, were "well-progressed".

The firm completed one bolt-on acquisition in the second half in TIC, acquiring PCS Consultants, to deepen its scale in water and air, for a total consideration of £9m.

"During the second half, the group settled £18m of deferred consideration," the board said in its update.

"Incorporating this, and the acquisition of PCS, year-end net debt excluding lease liabilities is expected to be in the region of £170m, 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 mergers and acquisitions."

At 1215 BST, shares in Marlowe were down 5.75% at 471.23p.

Reporting by Josh White for Sharecast.com.

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