Marlowe Share Discussion Threads

[simon gordon] 24/11/2022 16:23

On the quarterly chart the support zone looks to be around 400p area:


free stock charts from uk.advfn.com

[dr biotech] 24/11/2022 14:54

The cenkos note is fairly positive, revenue revised up, although margin and PBT revised down 10%. Does say price has already come down this year on sentient.

[prokartace] 24/11/2022 14:43

Hope so sceptical I would love to buy there

[mcmather] 24/11/2022 14:09

£100k director purchase; will it stop the slide?

[dr biotech] 23/11/2022 21:59

Yeah, and as alway adjusted EBITDA isnt profit after tax…

Still think this is a decent long term hold.

[1nf3rn0] 23/11/2022 16:22

I noticed annualised capex (presumably largely IT spend) is also increasing sharply, in excess of revenue growth, and may mean cost efficiencies on aquisitions taking longer to come through.

[dr biotech] 23/11/2022 16:07

From shares mag


Calum Battersby, analyst at Berenberg, said: “While headline metrics remain strong, and we expect Marlow to continue to deliver strong underlying earnings growth, we increasingly believe that the cash performance of the business will need to improve for Marlowe’s valuation to re-rate closer to similar consolidation stories.

“However, we forecast another year of over 20% EPS growth, at a current valuation of 16x PE. We therefore still view the equity story as highly attractive and reiterate our ‘buy’ rating.”

[dr biotech] 23/11/2022 16:05

Seems it’s mostly downgrades..



Marlowe shares tumbled by 13 per cent on Wednesday after brokers downgraded their earnings per share outlook for the group due to the impact of rising interest rates on servicing its debts.

The Bank of England has hiked the UK's base rate… made it more expensive to borrow money, which Marlowe has done in order to fund its extensive spree of acquisitions.

Since being founded seven years ago, Marlowe has expanded by buying dozens of companies, including £44million during the current year on ten firms, such as Northampton-based TP Health.

'We use acquisition as a tool to deepen our presence in our current compliance verticals and broaden into new ones,' the business remarked.

'Marlowe is set up favourably to source deals, complete in-house due-diligence and execute on attractive multiples with large dedicated corporate development, strategy and integration planning teams.'

[1nf3rn0] 23/11/2022 14:43

Organic growth of 8% includes new business, cross selling and pricing... maybe analysts expected a higher figure given the inflationary environment?Although the board say that 8% organic is ahead of their market growth rate. They also make the point that they are more exposed to labour inflation than material and that whilst there has been "some wage inflation" it has been mitigated through pricing and they "do not expect inflation to adversely impact the Group's operating margins".

[dr biotech] 23/11/2022 11:08

I can’t really see what’s in the results to justify an 11% fall. Just above expectations and the rise in interest rates has been known for a while. Perhaps someone was hoping for a bigger beat.

Substantial volume today.

[1nf3rn0] 23/11/2022 09:41

Although you could argue the fall from the 900-1000p range to where we were prior to today's fall already factored in higher interest and tax rates.Market seems to be edging back to risk off mode, after the recent rally, ahead of what is going to be a tricky 2023, particularly in the UK. So I expect it's going to be more common to see markdowns on results days rather than mark ups.

[1nf3rn0] 23/11/2022 08:35

My guess would be that, while still on track for 100m EBITDA by FY24, the I and T elements are now higher, with higher bank rates and government increasing corp tax. This will mean analysts reducing retained earnings / FCF estimates.

[essential] 23/11/2022 08:22

Why the mark down? Results look fine

[linton5] 23/11/2022 07:50

Same all over bud adventures having issues this week

[1nf3rn0] 10/11/2022 16:26

According to the latest results, since refinancing in February, borrowings are at SONIA plus between 1.55% and 2.8%. Nothing excessive. And debt / EBITDA is fairly low being well under 2 times.

[prokartace] 10/11/2022 11:42

Inferno, an interesting point about the debt levels The market is very sensitive about debt levels currently because of the rising burden of carrying it. I have been eyeing a purchase of the share but would like to know a little more about the structure of that debt before I do so

[1nf3rn0] 09/11/2022 22:59

I'd normally look to top up around this level, but will hold off now till the half year results are out in a couple of weeks - for a bit more clarity, and quite probably a lower price the way things are going.

[wad collector] 09/11/2022 16:05

Well they are winning at the moment. JMP were the fund that increased the shorts. Of course they could be wrong....

[1nf3rn0] 07/11/2022 15:35

Seems an odd target for shorters given progress to date against medium term targets, the large portion of recurring and regulatory revenue and net debt being comfortably under 2x EBITDA.