Marlowe (MRL) H2 2025 earnings summary

Executive summary

• Revenue from continuing operations grew 4% year-over-year to £304.5m, driven by organic growth and acquisitions.

• Adjusted EBITDA from continuing operations rose 4% to £32.8m, with margin stable at 10.8%.

• Statutory profit before tax improved to £2.8m from a loss of £9.2m, reflecting lower adjusting items.

• Group revenue was £373.0m, including contributions from divestments and demergers.

Financial highlights

• Adjusted profit before tax increased 37% year-over-year to £18.2m.

• Adjusted EPS rose 47% to 15.3p; statutory EPS improved to 5.0p from (6.0)p.

• Cash generated from operations before adjusting items was £48.7m, with 105% cash conversion.

• Closing net cash position (excluding leases) was £22.2m, a swing from net debt of £176.6m, aided by divestment proceeds.

Outlook and guidance

• Market remains supported by long-term regulatory and non-discretionary demand drivers.

• Significant M&A opportunities exist in fragmented TIC markets, with a £7.8bn addressable market.

• Mitie’s recommended offer for the group implies a total enterprise value of £366m and a 39% premium to the 3-month average share price.