Marlowe shares up as it secures profits

Shares in AIM-listed safety specialists Marlowe (LON:MRL) climbed 2.81% to 586p (as of 14:55 GMT) after profits before tax for the six months ended 30th September doubled. Revenues for the half year dropped against the comparative period due to COVID-linked site access problems but margins improved significantly. Management said that trading had started well during the second half and the pandemic was no longer having a material impact on the business’s behaviour.

CEO Alex Dacre commented: “We are pleased to report both a resilient performance and significant strategic and operational progress in the first half.

“Despite the challenges presented by COVID-19, we have continued to implement our strategy at pace. Our business model has demonstrated its defensive qualities and we made strong operational progress in the period, with significant margin expansion, the successful execution of integration programmes and enhanced cash generation. The acquisitions of the software platform Elogbooks, alongside six further bolt-ons, and the post-period-end acquisition of Ellis Whittam, mark a further step in our strategy of providing our clients with a comprehensive approach to their regulatory compliance needs.

“Our Group has undergone a transformation, in scope, scale and quality of earnings since its formation – we are uniquely positioned to deliver a one-stop approach to our clients’ health, safety and regulatory compliance needs; from software and digital applications, assurance and consultancy, through to the full implementation of recurring testing, inspection and compliance programmes.

“Our organic growth trajectory remains on track. We have made a strong start to the second half and look forward to delivering further profitable growth.“