Marlowe trading strongly as it sets out new goals

Business software and services company Marlowe said on Tuesday that trading in its second half remained “strong”, with results for the year ending 31 March expected to be at the top end of current market expectations.

The AIM-traded firm also set out its strategy for both organic and acquisition-led growth, with a target of achieving revenue of around £500m and adjusted EBITDA of £100m over the next three years.

Run-rate revenue was currently £245m, and run-rate adjusted EBITDA was standing at £37m.

It also set a new medium-term adjusted divisional EBITDA margin target of 20%, from the previous 15% target, which it was aiming to achieve in the next three years.

The run-rate adjusted divisional EBITDA margin was currently around 16%.

“Reflecting the transformation in scope, scale and quality of earnings of the group, Marlowe will now report as two divisions,” the board said in its statement.

The first would be titled ‘governance, risk and compliance’, providing health and safety; employment law, human resources and occupational health assurance services; and environmental health and safety, compliance and -learning software products.

It said the second would be referred to as ‘testing, inspection and certification’, providing recurring testing and inspection regimes across fire safety and security; water treatment and air hygiene; and contractor compliance.

At 1046 GMT, shares in Marlowe were up 3.62% at 659p.