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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Gain to date: 30.6%
Original entry point: Buy at 310p, 23 March 2017
A 30%+ share price gain in three months is a great start for our trade on support services group Marlowe (MRL:AIM). We think there is much more to come from the fire and water services expert, particularly as it has just made an interesting acquisition and imminent full year results could remind the market of its achievements and future potential.
As a reminder, Marlowe is buying small businesses that serve heavily-regulated markets. Its activities include checking fire detection and fire alarm systems, as well as making sure hotels and offices have clean water.
It had £2.7m net cash as of 31 March 2017. A month later Marlowe increased it debt facility by £5m to £17.5m, giving it greater firepower to make acquisitions.
On 16 June it paid £1.9m for Advance Environmental which provides water treatment and hygiene services to sectors including healthcare, education and leisure.
Full year results are expected to be published at the end of June. We expect an update from the company on how it is managing to increase operating margins across its acquired businesses.
Keep buying at 405p.
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Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.