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Marlowe PLC on Tuesday reported a swing to a profit through a jump in revenue, boosted by organic growth and the contribution of its many acquisitions throughout the year.
In the year ended March 31, the business safety and regulatory compliance firm reported a pretax profit of £5.9 million, swinging from a loss of £1.6 million the prior year.
Annual revenue surged to £315.9 million, up 65% from £192.0 million a year prior. Marlowe cited strong organic growth of 11% and the contribution of acquisitions during the year for the increase.
The company completed 20 acquisitions during the year. Marlowe's largest acquisition was the Redditch, England-based occupational health and well-being company Optima Health Group Ltd for £135 million in January.
The company reported a strong start to its new financial year, with good levels of organic growth that was consistent with its medium-term high single-digit target. Marlowe added that inflationary and recruitment pressure were not currently impacting the group.
‘Our results reflect strong underlying organic growth of 9% and the contribution from acquisitions, which we are integrating successfully. We continue to exceed the growth of our regulatory compliance markets through our ability to cross-sell services and software and our high levels of customer service, which results in low rates of customer attrition. We are delivering at pace on our vision of becoming a one-stop provider for our customers' compliance needs, with run-rate revenue now exceeding £430 million,’ said Chief Executive Alex Darce.
Looking forward, Marlowe expects to exceed the financial targets set in February 2021 to reach run-rate revenue of £500 million and adjusted run-rate earnings before interest, tax, depreciation, and amortization of £100 million by the end of financial 2024.
In financial 2021, Marlowe reported run-rate revenue of £280 million and run-rate adjusted Ebitda of £44 million.
Shares in Marlowe were up 2.8% at 833.00 pence on Tuesday morning in London.
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