28th Apr 2025 12:27
(Alliance News) - Marlowe PLC on Monday said it expects to report a decline in earnings during its most recent financial year, and announced its acquisition of SludgeTek Ltd.
The London-based provider of software and services for safety and regulatory compliance said it expects to post revenue of around GBP305.0 million for its financial year that ended March 31, which would be 39% lower than GBP503.2 million the year before.
Adjusted earnings before interest, tax, depreciation and amortisation are anticipated at around GBP32.5 million, following GBP4.2 million in head office costs. This would be down 34% from GBP49.0 million.
Adjusted pretax profit is expected ahead of market expectations at around GBP18.5 million, against GBP46.8 million a year prior. Marlowe cited a company-compiled prior market consensus for GBP16 million in adjusted pretax profit.
Following the completion of its ongoing buyback for up to GBP75 million, for which GBP72 million to date has been returned to shareholders, Marlowe intends to launch a new additional buyback for up to GBP15 million.
The new programme will be undertaken on the same terms as the prior buyback, and will be funded by the company's existing cash resources.
Marlowe also announced on Monday the acquisition of waste management and manufacturing services provider SludgeTek for an expected enterprise value of GBP6.2 million.
SludgeTek delivered revenue of GBP5.3 million and adjusted Ebitda of GBP2.7 million in its most recent financial year that ended September 30.
Marlowe will make an initial GBP5.3 million payment, followed by a deferred consideration of around GBP500,000 based on the completion of post-acquisition performance targets. It expects the business to be "easily integrated into the groups' operations" and does not anticipate any restructuring costs.
"The acquisition further strengthens Marlowe's position as a leading provider of wastewater rental solutions and is highly complementary to the group's existing capabilities," said the company.
"The group continues to actively assess further bolt-on acquisition opportunities across both Water & Air Hygiene and Fire Safety & Security, consistent with its strategy to build scale and consolidate market leadership in these attractive and resilient sectors."
Shares in Marlowe were up 2.0% at 334.50 pence each in London on Monday afternoon. The stock is up 28% over the past year.
By Emily Parsons, Alliance News reporter
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