£10m Placing and Interim Results

December 14th 2016

Half Year Results 2016

Marlowe plc ("Marlowe", the "Company" or the "Group"), the support services group focused on acquiring and developing companies that provide critical asset maintenance services, announces its unaudited results for the six month period ended 30 September 2016 (“Interim Report”).

The Interim Report includes the results for six months of ownership of Fire & Security (Group) Limited ("Swift") and WCS Environmental Group Limited ("WCS"), five months of Fire Alarm Fabrication Services Limited ("FAFS”) and one month of H2O Chemicals Limited (“H2O”). Hentland Limited (“Hentland”) and Titan Fire and Security Limited (“Titan”) were acquired after the period-end.

Summary of events since the start of the financial year:

  • April: Admission to AIM; placing to raise £3m and completion of the acquisition of Swift, one of the UK's leading fire and security systems businesses, forming Marlowe’s Fire Division;
  • Acquisition of WCS, a provider of integrated water treatment, hygiene, testing and engineering services, forming Marlowe’s Water Division;
  • May: Acquisition of FAFS, a provider of fire protection services, further extending Marlowe's fire activities in the strategically-important London market;
  • September: Placing to raise £10m and acquisition of H2O, a provider of integrated water treatment, hygiene and testing services, extending the geographical reach of Marlowe’s Water Division;
  • October: Acquisition of Hentland, a national fire and security systems business, extending Marlowe’s Fire Division national coverage;
  • November: Acquisition of Titan, developing further route density in the London market for the Fire Division;
  • acquisitions are performing in line with expectations; integration plans well advanced and operational improvement initiatives proceeding to plan;
  • encouraging initial momentum in cross-selling services between Fire and Water Divisions;
  • a well-developed and attractive pipeline of opportunities to add further scale to the Group;
  • as announced separately today, Marlowe is raising approximately £10 million through a placing, with the proceeds to be used to support Marlowe's acquisition-led growth strategy.

 

ADJUSTED RESULTS - Continuing operations

 

HY 2016

Revenue (£m)

17.7

EBITDA (£m)*

1.7

Operating profit (£m)**

1.4

Profit before tax (£m)**

1.3

EPS (p)

5.1


Commenting on the results Alex Dacre, Chief Executive, said

"We made good strategic and operational progress in the first six months of our first year of trading as Marlowe plc. We completed four acquisitions, and a further two since the period-end, providing us with a strong platform for growth in our initial target markets of fire protection, security systems and water treatment services. The integration of these acquisitions is proceeding to plan and we have a well-developed pipeline of attractive opportunities to add further scale to Marlowe as we implement our strategy of building a leading UK support services group in complementary areas of critical asset maintenance. The second half year has started well and we have revised our budget upwards to reflect recent trading and acquisitions. We are confident of making further progress through the second half of the year.”

Placing to raise approximately £10 million

Marlowe plc ("Marlowe", the "Company" or the "Group"), the support services group focused on acquiring and developing companies that provide critical asset maintenance services, today announces a Placing to raise approximately £10 million. The Placing Proceeds will be used to support Marlowe's acquisition-led growth strategy.

The Placing will raise approximately £10 million before expenses through the issue of 3,450,000 new ordinary shares of 50 pence each (the "Placing Shares") at 290 pence per share (the "Issue Price") to certain existing and new investors. The Placing was oversubscribed and the Issue Price is equal to the mid-market closing price per share of 290 pence on Friday 9 December 2016.

Application will be made for the Placing Shares to be admitted to trading on AIM at 8.00 a.m. on 16 December 2016. Following admission of the Placing Shares, the total number of voting rights in the Company is expected to be 30,916,995.

Alex Dacre, Chief Executive of Marlowe plc, commented:

"We are pleased by the strong level of support we have received in this fundraising, and in particular to have attracted several major institutional investors as new shareholders. The funds raised from this placing will provide us with resources to continue to add scale to Marlowe through our acquisition-led growth strategy and to generate further strong returns for investors."