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Marlowe PLC on Wednesday said profit jumped in the first half of its financial year, following strong revenue growth from acquisitions.
The London-based software and services firm reported a 6.1% rise in pretax profit to £1.7m in the six months to September 30, from £1.6 million the year before.
Revenue surged 66% to £222.0 million from £134.5 million, which Marlow said was driven by organic growth of 8% as well as the contribution from acquisitions.
The company completed three bolt-on acquisitions in the year-to-date, investing £6 million at ‘attractive multiples’. Integration of these acquisitions, alongside those made in the latter half of last year, is on track and the businesses are trading in-line with pre-acquisition expectations.
Marlowe’s Governance, Risk & Compliance division recorded organic revenue growth of 7%, driven by new business, increased customer retention rates, cross-selling and price increases across the business lines.
The Testing, Inspection & Certification division experienced 9% organic revenue growth, with growth within Water & Air Hygiene and Fire Safety & Security. Marlowe said this division recorded new customer wins, upsold additional capabilities to existing customers and focused on customer retention.
Adjusted earnings before interest, tax, depreciation and amortisation increased 93% to £26.3 million from £13.6 million.
Looking ahead, Marlowe said trading for the full year is expected to be slightly ahead of expectations, with continued high single digit organic growth.
Marlowe expects to meet a run-rate target of £500m of revenue and £100m of adjusted Ebitda by financial 2024.
Marlowe shares were down 12% to 642.45 pence on Wednesday morning in London.
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