Marlowe (MRL) Trading Update summary

Financial and strategic highlights

• Completed divestment of selected GRC assets for £430 million and returned £150 million to shareholders via special dividend.

• Launched £75 million share buyback, nearing completion, with £66 million returned to shareholders in FY25.

• Demerged Occupational Health division, forming Optima Health plc as a separately listed entity.

• Continuing operations now focused on Testing, Inspection & Certification (TIC) markets, specifically Water & Air Hygiene and Fire Safety & Security.

• Net cash position of £22 million at year-end, with £50 million debt facility undrawn.

FY25 trading performance

• Expected FY25 revenue of approximately £305 million and adjusted EBITDA of £32.5 million, both in line with market expectations.

• Adjusted profit before tax anticipated at £18.5 million, ahead of consensus.

• Strong cash generation exceeded expectations, supporting shareholder returns.

• All restructuring activities for continuing operations concluded by 30 September 2024.

• One-off non-cash adjustment of £3.1 million in Water & Air Hygiene segment, with no impact on future trading or cash flow.

Acquisition and growth strategy

• Acquired SludgeTek for an enterprise value of £6.2 million, strengthening wastewater services offering.

• SludgeTek generated £5.3 million revenue and £1.7 million adjusted EBITDA in year ended 30 September 2024.

• Acquisition expected to be easily integrated, with no restructuring costs anticipated.

• Actively assessing further bolt-on acquisitions in Water & Air Hygiene and Fire Safety & Security.

• Strategy remains focused on margin enhancement, organic growth, and market consolidation.