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Highlights

  • Marlowe reported H1FY25 revenue of GBP 151.7mn, up 3.7% YoY, driven by demand in regulated service markets
  • Adjusted EPS rose 18.5% YoY to 6.40p, supported by a GBP 165.9mn profit from a major divestment
  • FY25 revenue is projected at GBP 305mn with adjusted EBITDA of GBP 32.5mn, in line with market expectations

Marlowe PLC (LSE: MRL) is a software and business services company. It is listed on the FTSE AIM 100 index. The company focuses on ensuring regulatory compliance. Its services are divided into three main areas:

  • Inspection & Certification
  • Governance, Risk & Compliance (GRC)
  • Testing

In the first half of the financial year 2025 (H1FY25), Marlowe reported revenue of GBP 151.7 million, up 3.7% year-on-year from GBP 146.3 million, driven by its continued focus on highly regulated, business-critical service markets.

Adjusted basic earnings per share rose 18.5% yoy to 6.40 pence, reflecting the GBP 165.9 million profit from a major divestment. The group ended the period with net cash of GBP 30.8 million, a significant shift from net debt of GBP 192.7 million in H1FY24. It follows the GBP 430 million divestment, settlement of its previous debt facility, and the payment of a GBP 150.3 million special dividend.

Recent Business Update

Marlowe has announced a decent FY25 performance, with continuing operations projected to generate around GBP 305 million in revenue and GBP 32.5 million in adjusted EBITDA, in line with market expectations. The group also revealed the bolt-on acquisition of SludgeTek for an enterprise value of GBP 6.2 million, expanding its wastewater services offering and reinforcing its strategic focus on the Testing, Inspection and Certification (TIC) sector.

Company Outlook

The group continues to perform in line with the Board’s expectations. Demand for its Testing, Inspection, and Certification (TIC) services remains high. The company is also focused on improving margins.

The UK Autumn Budget 2024 may cause short-term pressure on margins. It could also lead to some delays in project timelines. However, the group is confident it can manage these issues. It plans to use pricing strategies and boost operational efficiency.

Looking ahead, the TIC division is expected to generate GBP 325 million in revenue by 30 September 2025. Adjusted EBITDA is projected to be around GBP 40 million. Head office costs are estimated at GBP 4 million. No further restructuring expenses are expected.

Top 10 Shareholders

The top 10 shareholders collectively own approximately 66.25% of Marlowe Plc’s total shares. Lord Michael Anthony Ashcroft is the largest shareholder, holding around 19.50% of the company’s shares. Slater Investments Ltd. follows with a shareholding of about 10.26%.

Stock Information

The stock has experienced a growth of approximately 12.42% over the past month and a 4.62% increase in the last three months. As of 15 May 2025, the stock’s closing price is GBX 362.00

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 15 May 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

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Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.