Marlowe (MRL) H1 2025 earnings summary

Executive summary

• Revenue from continuing operations rose 4% year-over-year to £151.7m, driven by organic growth and acquisitions.

• Completed sale of GRC software/services assets for £430m and demerger of Occupational Health division, refocusing on Fire Safety & Security and Water & Air Hygiene within the TIC market.

• Returned £200m to shareholders via £150m special dividend and up to £75m share buyback, with £51m completed as of December 2024.

• Integration and restructuring investments concluded; no further restructuring costs expected.

• The business now serves 27,000 UK customers in Fire Safety & Security and Water & Air Hygiene.

Financial highlights

• Adjusted EBITDA for continuing operations was £15.3m, with a margin of 10.1%, down 40bps year-over-year.

• Adjusted profit before tax from continuing operations increased 16% year-over-year to £8.0m.

• Adjusted EPS from continuing operations rose 19% to 6.4p; statutory EPS 2.5p.

• Statutory profit before tax for the group was £161.7m, reflecting a £165.9m profit on divestment.

• Net cash (excluding leases) at 30 September 2024: £30.8m (HY24: net debt £192.7m).

Outlook and guidance

• FY25 adjusted EBITDA and adjusted PBT expected to be approximately £33m and £16m, respectively.

• TIC division expected to deliver £325m revenue and ~£40m adjusted EBITDA for 12 months to 30 Sep 2025.

• Medium-term target for adjusted EBITDA margin is 15% through operational efficiencies and revenue mix.

• No further restructuring costs anticipated; focus on organic growth and margin enhancement.

• Capex for FY25 expected to be around £4m, including £1m for capitalised software.