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Investment Case

Marlowe has a clearly defined growth strategy as a one-stop-shop in the provision of regulated safety and compliance software & services, through a combination of fast-paced organic and acquisition-led growth.

This growth is underpinned by our market’s defensive & resilient qualities. Our software and services are deemed non-discretionary by our customers.

Operating in highly attractive and resilient markets

We operate in specialist, regulated markets and provide software and services that are largely nondiscretionary for our customers and, therefore, largely insulated from the economic cycle. In addition, every one of our markets has structural growth characteristics, as regulations are not only complex, but also continuously evolving, with increasing enforcement action from regulators.

Our clients’ budgets continue to grow at attractive rates from the increasing focus on compliance, driven by environmental, social and governance issues. The risks and cost of not being in compliance significantly outweigh the cost of implementation.

This market backdrop, along with our strong channel to market, customer service and effective sales & marketing model allow us to consistently achieve organic growth in the high single digits.

Well-practised in delivering growth from value-enhancing M&A

The combination of fast-paced acquisition activity and organic investment enables us to deliver impressive growth ahead of the market. We are positioned in fragmented markets and have a track record of completing complementary acquisitions at attractive multiples.

We effectively integrate acquisitions, and this results in added shareholder value from efficiencies and cost-savings, as well as improved service and capability for customers. Another important advantage for us is our ability to deliver revenue growth from the cross-selling opportunities available from relationships with our c.50,000 clients.

Long customer relationships, annuity-type recurring revenues with good future visibility

Our consulting and software capabilities are delivered via multi-year contracts, often 3-5 years long, which provides predictable revenue streams. We keep clients for over 12 years, on average.

Continuously improving our differentiated technology and operational systems

We invest in our people, systems and products to ensure that we have the correct training and tools to deliver our service, as technology and systems are key differentiators, and central to what we provide.

Using our technical expertise we are able to bring enhanced software offerings to market as a result of organic investment. We utilise operational planning systems to deliver high standards of customer service and ensure that we are leveraging our scale to optimise staff utilisation and productivity.

Growing barriers to entry from our scale and nationwide coverage

Our focus is on markets which are fragmented, permitting market share gains and industry consolidation. As we build market share, the comprehensive service which we can deliver, and the returns we can generate disadvantage smaller, local competitors.

In each of our business areas, we are one of only a small number of providers who can operate nationally with the capabilities, scale and technology to effectively partner with clients. Our clients often consolidate their supplier base in favour of partners who, like them, possess scale, breadth of capability and nationwide reach.

Enhanced standards of service are needed, in part to comply with increasing regulatory standards, which smaller competitors, without our technology, scale and capabilities struggle to deliver.

Resilient business model

We provide services and software are underpinned by regulations and are therefore predominantly non discretionary and essential throughout the economic cycle.

Our Markets

The markets we occupy are highly fragmented. Our current run rate revenues indicate we serve on average c.5% of our estimated total addressable UK markets of £8.6 billion, yet we are a top three player in each of the compliance segments we service and market leader in three sectors.

We have over 50,000 customers spanning more than 50 different sectors, ranging from large multinational companies to SMEs, as well as government and public sector organisations. Within this, no single customer contributes more than two percent of Marlowe’s total revenue.