half year results - marlowe plc
TRANSCRIPT
Strictly Private and Confidential
DECEMBER 2019
HALF YEAR RESULTS
2
Marlowe is a UK leader in specialist services which assure the safety and regulatory compliance of commercial properties, whilst
managing risk for businesses across the country. We are focused on providing technology-enabled services across health & safety,
fire safety, security, water treatment & hygiene and air testing & quality – all of which are vital to the wellbeing of our customers
operations and are invariably governed by regulation.
MARLOWE AT A GLANCE
15% of the
UK’s
commercial
properties
1.5 million
service
visits per
annum
Technology
led health &
safety
compliance
solution
30+ million
assets tested,
inspected and
certified
annually
1,400 fee
earning
compliance
experts
Top-3 position
in each sector
with critical
mass
30 acquisitions
since April
2016, strong
future pipeline
Essential
services in
non-cyclical
growth markets
Disciplined
approach to
capital
allocation and
leverage
Record of
sustainable &
accelerating
organic
growth
78% recurring
revenue£200
million
runrate
revenue
20%+ revenue
from
customers
taking multiple
services
66% compound
revenue growth;
6.5% organic
(H1 FY20)
Economies of
scale &
operating
efficiencies
driving margin
expansion
MARKET BACKDROP
FINANCIAL PERFORMANCE
OPERATIONAL PERFORMANCE
3
Profits Adjusted EBITDA up 50% to £7.5m; adjusted profit before tax up 58% to £6.2m. Upgrade to FY guidance
EPS Adjusted EPS up 31% to 11.5 pence per share
Integration
Integration programmes on track and acquisitions trading in line with plan. Operational and technology
improvements underway to drive margin enhancement. Significant integration successes within WCS Suez -
margins now consistent with our existing business. Good progress with integration of Clearwater and
Quantum
LeverageNet debt of £19.6m, <1.5x adjusted EBITDA. Oversubscribed placing to raise £20 million completed during
period
Platform
ScaleGroup revenue up 58% to £89.3m (organic growth accelerates to 6.5%); current 12 month run-rate revenues
of approximately £200m. As a group we are able to work with clients across their compliance requirements.
PipelineStrong pipeline of target acquisition opportunities to continue to add further scale, build customer density and
broaden service capabilities
Acquisitions
Three acquisitions completed during period:
- Clearwater Group (May 2019), transformational for Water Treatment division, £75m revenue clear
market leader
- Quantum Compliance (August 2019), significantly enhanced scale of Health & Safety business
- Aquatreat (July 2019), adding scale to our water treatment chemical operation
2 further acquisitions post period end: Law at Work & FSE Fire Systems
H1 2020 UPDATE – EXECUTIVE SUMMARY
4
H1 2020 FINANCIAL SUMMARY
REVENUE
(£m)
17.736.0
56.489.3
46.8
80.6
128.5
0
50
100
FY 17 FY 18 FY 19 H1 2020
1.73.1
5.07.50
4.0
7.2
11.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
FY 17 FY 18 FY 19 H1 2020
ADJUSTED EBITDA
(£m)
5.1 6.28.8
11.5
10.4
14.0
18.8
0.0
5.0
10.0
15.0
20.0
FY 17 FY 18 FY 19 H1 2020
ADJUSTED EPS
(pence)
• Revenue up 58% on H1 2019:
‒ Strong organic growth of 6.5% driven by broader & better
service, improved account management and retention.
Significant growth through M&A
• Adjusted EBITDA up 50% to £7.5m; adjusted profit before tax up
58% to £6.2m
• Adjusted EPS up 31% to 11.5p, reflecting impact of £20m placing
COMMENTARY
H1 H2
4.0% 4.5% 6.5%
Organic Revenue Growth % Margin ex. HO costs & impact of Clearwater restructuring
9.6% 9.9%
HY20 HY19 % Change HY20 ∆ versus
IAS 17 IAS 17 IFRS 16 IAS 17
Revenue (£m) 89.3 56.4 58% 89.3 -
EBITDA (£m) 7.5 5 50% 9.9 2.4
Operating Profit (£m) 6.7 4.2 59% 6.8 0.1
Profit Before tax (£m) 6.2 3.9 58% 6.3 0.1
EPS (p) 11.5 8.8 31% 11.3 (0.2)
Adjusted Results
HEALTH & SAFETY
Purpose
Assure the regulatory compliance of commercial organisations in
health & safety, employment law and property risk management.
Recurring Service
Auditing, consulting, training & software as a service (SaaS).
FIRE SAFETY & SECURITY
Purpose
Assure buildings have adequate fire safety measures and
that fire & security systems are compliant with latest regulations.
Recurring Service
Assessing, testing, inspecting, maintaining, monitoring and certifying.
~30%revenue WATER TREATMENT & HYGIENE
Purpose
Assure water systems are safe, efficient, sustainable and compliant.
Recurring Service
Assessing, dosing, maintaining, monitoring, testing, treating
and certifying.
~35%revenue
AIR TESTING & QUALITY
Purpose
Assure commercial properties are compliant with air quality and
environmental regulations.
Recurring Service
Inspecting, testing, sampling, monitoring, remediating and certifying.
Marlowe provides regulated testing, inspection & compliance services. Each is delivered by one of our specialist
divisions. Individually, these divisions are leading players in their fields but together form a group that can provide a
comprehensive and integrated approach to our customers safety, risk management and regulatory compliance.
~20%revenue
~15%revenue
5
MARLOWE’S END-TO-END APPROACH TO HEALTH AND SAFETY COMPLIANCE
BALANCE SHEET
6
CASH FLOW
• Net assets £97.0m (FY19: £77.5m) reflecting £20m share placing
• Net debt £19.6m (FY19: £20.1m), <1.5x EBITDA
• Net cash flow from operating activities £0.8m (HY19: £1.3m):
• Post acquisition investment in WC of acquired businesses
• Net debt % revenue & DSOs in line with 31 March 2019
• Expecting strong operating cash generation in H2
HY20 FY19 ## HY20 ∆ versus
IAS 17 IAS 17 IFRS 16 IAS 17
Intangible assets 108.3 89.6 108.3 -
PPE 6.8 6.3 6.8 -
Rights of use asset - - 12.3 12.3
Deferrred tax asset 0.2 0.2 0.2 -
Non-current Assets 115.3 96.1 127.6 12.3
Inventories 4.7 4.5 4.7 -
Trade & other receivables 49.0 39.8 49.0 -
Other financial assets 0.2 0.5 0.2 -
Cash and cash equivalents 6.4 7.7 6.4 -
Current Assets 60.3 52.5 60.3 -
Total Assets 175.6 148.6 187.9 12.3
Trade and other payables (40.7) (33.2) (40.7) -
Borrowings - - - -
Lease liabilities - - (4.8) (4.8)
Other financial liabilities (0.6) (0.4) (0.6) -
Current tax liabilities (1.5) (0.8) (1.5) -
Provisions (1.0) (0.5) (1.0) -
Current Liabilities (43.8) (34.9) (48.6) (4.8)
Trade and other payables (5.0) (5.0) (5.0) -
Borrowings (24.8) (26.7) (24.8) -
Lease liabilities - - (7.6) (7.6)
Deferred tax liabilities (4.4) (3.8) (4.4) -
Other financial liabilities (0.6) (0.7) (0.6) -
Non-current Liabilities (34.8) (36.2) (42.4) (7.6)
Total Liabilities (78.6) (71.1) (91.0) (12.4)
Net Assets 97.0 77.5 96.9 (0.1)
£m 6 mths ended 30 Sep (£m) HY20 HY19 HY20 ∆ versus
IAS 17 IAS 17 IFRS 16 IAS 17
Net cash from operations 1.3 1.9 3.7 2.4
Net finance costs (0.4) (0.2) (0.4) -
Income taxes paid (0.1) (0.4) (0.1) -
CF from Operating Activities 0.8 1.3 3.2 2.4
Restructuring costs (3.8) (2.2) (3.8) -
Net cash used in operating activities (3.0) (0.9) (0.6) 2.4
Cash flows from investing activities
Investments in PPE (1.0) (0.7) (1.0) -
Purchase of subsidiaries (8.3) (9.2) (8.3) -
Disposal of non-core business - - - -
Cash flows used in investing activities (9.3) (9.9) (9.3) -
Cash flows from financing activities
Proceeds from share issues 19.3 19.3 19.3 -
Repayment of bank borrowings (14.0) (2.3) (14.0) -
New bank loans raised 6.0 3.5 6.0 -
Finance lease repayments (0.3) (0.3) (2.7) (2.4)
Other financing activities - 0.1 - -
Net cash generated from financing activities 11.0 20.3 8.6 (2.4)
Net Cash Flow (1.3) 9.5 (1.3) -
£26.5m
£46.5m
H1 2019
H1 2020
Revenue
£3.1m
£3.9m
H1 2019
H1 2020
Adjusted EBITDA
£29.9m
£42.8m
H1 2019
H1 2020
Revenue
£2.5m
£4.5m
H1 2019
H1 2020
Adjusted EBITDA
+43%
+81%
7
DIVISIONAL PERFORMANCE UPDATE
Risk Management & Compliance
Business streams: Health, Safety & Compliance, Fire Safety &
Security, Risk Management Software as a Service (SaaS)
• Attractive growth and margin improvement achieved in period with
Adjusted EBITDA of £4.5m on revenues of £42.8m (representing growth of
81% and 43% respectively)
• H1 2020 has shown improved revenue per fee-earner and reduced
customer attrition across our Fire & Security business. William Martin has
continued its strong organic growth following investment in sales and
account management
• 220bps improvement in margin H1 2019 – H1 2020 (+50bps H2 2019 –
H1 2020)
Water Treatment and Air Quality
• Robust trading has seen Adjusted EBITDA rise to £3.9m and revenues of
£46.5m (representing growth of 27% and 76% respectively)
• Significant advances made on divisional KPIs; record customer compliance
rates, service delivery efficiency metrics continue to rise as a result of
enhanced density, roll out of scheduling technologies etc.
• Transformational acquisition of Clearwater completed during period –
business of significant scale, materially underperforming under previous
private equity ownership. Restructure and integration proceeding to plan.
• Underlying EBITDA margin (ex. impact of Clearwater) improvement of
40bps H2-H1 2020
Business streams: Water Treatment & Hygiene services and Air
Quality services
+76%
+27%
8
INTEGRATION UPDATES
Clearwater (May 2019) – Key integration
successesKey Focus: fully integrating Clearwater into WCS Group; driving organic
revenue growth; supporting staff and promoting an efficient overhead
function.
Quantum Compliance (August 2019) –
Early progressKey focus: supporting management to grow the business and
gradually integrate functions with William Martin over the twelve
month earnout period.
Focus Result
Property • Begun back office centralisation
Structure• New management team
structure implemented
Talent• Strong talent in business taking
key divisional roles
Cross-Selling
• Have begun to share consultants
amongst William Martin and
Quantum to increase route
density
Organic
revenue
• Key customer relationships
safeguarded
Focus Result
Structure• Fully integrated in to divisional reporting
lines to WCS Executive Team following
departure of Clearwater’s team
Overhead• Restructuring in overhead delivering
annualised savings of £2.5m
Procurement
• Insourced Clearwater’s chemical spend
(c.£1m)
• Centralised procurement within WCS
Group to benefit from economies of
scale
Customer
Service
• 10% improvement in customer KPIs to
97% leading to increased customer
retention
EBITDA• Business EBITDA improved from loss
making to profit inline with plan
Marlowe has built up significant integration expertise through working with divisional management from its 30 acquisitions since 2016 and has dedicated
resources and a well-defined process in place that allows for multiple concurrent integration programmes
Successfully identifying, evaluating, executing and integrating acquisitions at pace – a proven model that delivers returns
• LAW provides compliance services primarily aimed at SMEs, a largely unvended market, which
Marlowe can cross-sell its current compliance services into and vice versa
• Opportunity to add Meridian software to enhance LAW’s service
• Significant further bolt-on opportunities in a c£700m UK market, serving the UK’s 5 million SMEs
• ~80% subscription-based revenue with customers on auto-renewing contracts
• Maintains a high EBITDA margin across a diverse range of contracted customers
• Merge with Nestor, our current SME Compliance operation (c. £1m revenue)
Strategic Rationale
Background
• Established in 2005 as a leading mid-market consultancy in the provision of employment law,
human resources and health & safety. It has grown both organically and via two small acquisitions
• Headquartered in Glasgow, operating nationally and employs 70 people including employment
lawyers and consultants
RECENT ACQUISITION: LAW AT WORK
9
By acquiring Law at Work, a business which helps clients to mitigate their employee-related risk and assure their health & safety performance, we are both
strengthening Marlowe’s leading health and safety operation and significantly advancing our capabilities to work with clients across the full spectrum of their
compliance needs
• FY19 revenues of £5.4m and an EBITDA of £1.2m
• Total enterprise value comprised of initial cash consideration of £6.3m and a contingent cash earn
out of up to £4.85m, to be paid over three-years if the business grows EBITDA to £1.8m over that
time
• A 5.3x upfront multiple on FY19 EBITDA and a 6.2x multiple on FY2021 forecast EBITDA
Financial Profile &
Acquisition
Structure
RECENT BOLT ON ACQUISITION: FSE FIRE & SECURITY
10
Strategic Rationale
• Significant opportunity for intra-divisional cross-sales of niche fire & security services, including
sprinklers and passive fire-stopping. Marlowe does not currently offer these services but has been
receiving increased demand from existing customers
• Good route density across the East Midlands with high revenue per engineer
• Strong customer retention across a diverse customer base
• High levels of recurring revenue with many customers on auto-renewing contracts
Background• Established in 2005 by the two current shareholders, headquartered in Nottingham
• 50 employees, primarily distributed throughout the East Midlands
Financial Profile &
Acquisition
Structure
• FY19 revenues of £4.3m and an adjusted PBT of £600k
• Total enterprise value comprised of initial cash consideration of £2.4m and a contingent cash earn
out of £0.2m, to be paid over two-years
• A 4.0x upfront multiple of PBT, and a total EV/PBT of 4.3x
FSE is a regional fire & security company with a varied and high quality recurring customer base. It provides Marlowe with the opportunity to enhance its fire
protection offering into new specialities, improve route density and further improve engineer utilisation.
SUMMARY AND OUTLOOK
• Marlowe has a clear strategy to strengthen its position as the UK’s leading provider of regulated compliance
services
• Uniquely positioned in the UK to work with clients across their compliance requirements: from initial audit and
consultancy; through to software for managing compliance obligations and the implementation of a full
programme to ensure ongoing safety & compliance
• 17,000 customers with recurring revenues of ~78%
• Organic growth has accelerated as a result of the Group’s broader & better service capabilities, and the benefits
of cross-selling services across our divisions
• Scale and critical mass have resulted in increasing customer spend as we deepen relationships and deliver
multiple complementary services. Market leading density of customers and fee-earners continues to drive
service delivery efficiencies which is accretive to margins
• Strong pipeline of target acquisition opportunities advanced to various stages across all our existing markets
which is key to compounding growth strategy. Widespread execution and integration experience from 30 deals
since 2016 streamlining acquisition process, implementing multiple programmes concurrently and mitigating
post-acquisition risk
• The second half of the year has started well, with solid trading across our divisions supplemented by recent
acquisitions. We expect to deliver a full year performance ahead of current market expectations
11
Strictly Private and Confidential
APPENDIX
13
MARLOWE DELIVERS THE FULL RANGE OF RISK & COMPLIANCE SERVICES
Customers prefer a single, national provider of safety & compliance services. Marlowe delivers compliance across four closely-related risk sectors: fire
safety & security, water, air and health & safety.
o Audit & Consultancy
o Compliance Software
o Test & Inspect
o Treat & Remediate
o Certify
Services which assess & monitor risk to ensure
safety & compliance and minimise risk
We then provide services to test, inspect,
maintain the compliance of properties & safety
systems to certify their ongoing compliance
Health & safety audits, fire safety consultancy,
water risk assessments, fire safety system
inspections, water hygiene sampling,
ventilation hygiene inspections, lab analysis,
fire system monitoring etc
Water treatment, fire system maintenance,
kitchen extract compliance, asbestos
management, contractor management
End-to-End Health & Safety Compliance Model
Risk
Management
& Compliance
Solutions
Fire Safety &
Security
Water Treatment
& Hygiene
Air Quality
& Testing
Health & Safety
Training
Risk
Assessment,
and H&S Audit
Health & Safety
Audit and Consultancy
MERIDIAN
Health & Safety
Software as a
Service
Recurring
Testing,
Inspection and
Compliance
services
TOTAL
ADDRESSABLE
MARKET
£4.5 BILLIONIN UK
SIGNIFICANT SCOPE TO GROW MARKET SHARE
Marlowe’s total addressable market is estimated to be £4.5 billion per annum. On run rate revenue of £200 million, Marlowe’s
market share is less than 5%, demonstrating the significant potential for future growth.
UK Fire Safety &
Security Market
Market growth: ~3% p.a.
Top 10 Share: ~38%
Marlowe Fire Safety &
Security Division
% Revenue: ~30%
Market share: ~3%
UK Water Treatment &
Hygiene Market
Market growth: ~2-3% p.a.
Top 10 Share: ~47%
Marlowe Water Treatment &
Hygiene Division
% Revenue: ~35%
Market Share: ~5%
UK Health & Safety
Consultancy Market
Market growth: ~7% p.a.
Top 10 Share: ~40%
Marlowe Health & Safety
Consultancy Division
% Revenue: ~20%
Market Share: ~4%
UK Air Quality &
Testing Market
Market growth: ~4% p.a.
Top 10 Share: ~35%
Marlowe Air Quality &
Testing Division
% Revenue: ~15%
Market Share: ~7%
£1.9bn
£1.6bn
£600m
£450m
MARKET GROWTH DRIVERS
▪ Regulation: ever-increasing
health & safety laws and
regulations and their
enforcement burden
▪ Insurance requirements
▪ Increasing public
expectations around health,
safety & wellbeing result in
increasing importance on
corporate agenda
▪ Brand & reputational
protection
▪ Expansion of the built
environment: population
growth and urbanisation
leading to increased demand
for mandatory safety services
▪ Digitalisation driving the need
for more complex safety
systems and the resulting
requirement that they have for
maintenance & certification
Sources: Mordor Intelligence, Berenberg Research, Inflexion, AMA research, management estimates. 14
MARLOWE MODEL FOR POSITIONING TO CREATE SHAREHOLDER VALUE
• Invest in operational systems
and technology to improve
efficiency & productivity (route
optimisation & dynamic
scheduling systems, CRM
platform, Tablets & digital
quoting tools, real-time reporting
etc.)
• Improve account management
processes and service levels to
enhance contract retention
• Implement high standards of
governance, financial systems
and controls
• Optimise pricing
• Disciplined bolt-on M&A focused
on delivering:
‒ Deepening market share by
adding geographic reach and
density across UK
‒ Broadening capabilities
through expansion into
complementary services
where there is customer
demand
• Invest in sales & account
management to develop key
accounts and win new business.
Share customer relationships
across group to drive organic
growth
• Network effect: Leverage
customer & fee-earner density
and economies of scale to
improve service efficiency &
profitability whilst enhancing
customer service
• Integrate back office to realise
overhead cost synergies;
divisional management and
dedicated integration resource
adept in post-acquisition
management, restructuring and
cost control
• Share best practice across the
group
• Share customer relationships
between group businesses
through cross-sell framework
(e.g. CRM, sales commissions)
to drive organic growth,
reduce cost of sale and
strengthen customer
dependence on group. Strong
advantage compared to single
service competitors
• Roll out Meridian software
system as client interface
Enhance
Through growth initiatives and
operational improvement
Accelerate
Through organic investment and
bolt-on acquisitions
Integrate
To bring about efficiencies and
build a national infrastructure
Collaborate
To realise strategic synergies
across the Marlowe Group
Stringent
Regulations
Annuity-type
recurring
revenue
Non-
discretionary
spend
Sustainable
growth
drivers
Long
customer
relationships
Key strategic attributes underpin our business and investment approach…
Acquire
Highly
fragmented
markets
15
Divisions with the same customer: 2 Divisions 3 Divisions 4 Divisions Total
Value: £11.7m £16.5m £3.9m £32.0m
% of Top 100 Revenue: 19.00% 26.80% 6.30% 52.00%
CROSS DIVISIONAL SALES (TOP 100 CUSTOMERS)
GROUP CUSTOMERS AND CROSS-SELLING
RESILIENT AND BROAD CUSTOMER BASE
▪ 17,000+ customers across all sectors from SME’s to FTSE 100 companies.
Average customer spend ~£12k
▪ We work with 1 in every 8 of the UK’s large businesses (250+ employees)
▪ 80%+ group revenue from direct relationships with end users
▪ 78%+ group revenue from recurring services. Majority of the remainder is providing
additional services to long-term service clients and often repeat work
▪ Customer retention: c.90%+; average group customer relationship of c.10 years.
Improving as a result of better service, capabilities and switching costs
CROSS SELLING
▪ Services procured by same decision-makers within customer organisations across
the group
▪ The majority of our customers require the majority of our compliance services
▪ Cross-selling culture:
▪ Centrally led initiative – cross-sales management, CRM platform, sales meeting &
forums, commissions, marketing & events, sales buddy system, effective
communication across the group
▪ Approximately 20% of Marlowe’s revenues are now multi-service, where we are
delivering more than one service to our customers. Within the top 1,000 customers,
this percentage increases to 37% and within our top 100 customers to 52%
10 year +
c. £12k 17,000
c.1.25m
20%
Average Customer
RelationshipSite visits completed
per annum
CustomersAverage Customer
Spend
Of revenue from multi-
service customersNo customer > 3% of
revenue
<3%
16
17
An efficient end-to-end M&A engine, completing 30 acquisitions since 2016. Dedicated M&A resource adept at identifying and
engaging with complementary targets, negotiating attractive deals, conducting due diligence and working with divisional management
to prepare detailed integration plans.
ACQUISITIVE GROWTH MODEL
STRONG ACQUISITION TARGET PIPELINE
(# of Targets at each stage of process 2016 – Present)▪ Acquisition is key to Marlowe’s compounding
growth strategy, growing market share,
building density and broadening service
capabilities
▪ Track record of delivery and effective target
relationship management results in
‘preferred bidder status’ and a degree of
monopsony bargaining power
▪ Proficient at delivering off-market
opportunities; typically avoid sale processes
▪ Acquisition parameters extend beyond those
of other typical acquirers; willing to pursue
small scale targets and ‘difficult’ transaction
structures (corporate carve-outs etc.) hence
less competition for assets and attractive
valuations
▪ Group’s industry expertise coupled with
extensive M&A experience allows for a
streamlined and highly targeted diligence
process
▪ Average target size has increased as group
has scaled, but we continue to extract
significant value from smaller bolt-on
acquisitions
Total acquisition consideration since 2016: £130 million
Deep target pipeline advanced to varying stages enables steady, sustainable supply of new deals.
Multiple opportunities in parallel ensures ability to walk away from less attractive deals or unrealistic
seller expectations. Divisional group structure allows for multiple concurrent integration programmes.
# o
f A
cq
uis
itio
n T
arg
ets
0
5
10
15
20
25
30
35
40
Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Current
Due Dilligence Negotiations / Offer Made Meaningful Discussions Preliminary Discussions / Expressions of Interest
18
TECHNOLOGY DRIVING CUSTOMER EXPERIENCE, OPERATIONAL EFFICIENCIES AND VALUE
CREATIONMarlowe’s technology led approach to Health & Safety compliance is central to quality of service and customer experience, and
distinguishes our proposition within our markets. Technology is harnessed throughout the group to enhance efficiency of service
delivery and back office functions and to improve our clients compliance.
MERIDIAN PLATFORM TECHNOLOGY ENHANCING PROCESSES TO CREATE VALUE
▪ Technology strategy is central to post-acquisition management;
often acquired businesses have lacked technology investment and
have outdated systems in place
▪ Suite of technology enhancements implemented across all divisions
to date includes:
‒ CRM: operational platforms to plan, schedule and deliver
services, manage sales and maintain and develop customer
relationships
‒ Dynamic Resource Scheduling: scheduling software to
optimise route efficiency and automate data management (i.e.
recording consultant time on site, compliance information and
engineer locations directly from tablets). Lightfoot vehicle
tracking system to improve fuel efficiency and driver safety
‒ Report Writing Software: to enhance the quality, efficiency and
accuracy of risk assessments and consultant compliance reports
‒ Back office systems: e.g. SAGE 200 finance platform, Marlowe
employee portal to manage HR, company procedures, employee
communications etc. Flexicapture OCR system to automate
purchase ledger and avoid manual data entry
‒ Quickquote – proprietary app for engineers to price remedial
work via their tablet at a service visit, removing the need for
return visit
▪ Proprietary compliance software solution to manage health, safety and
compliance across multi-property organisations
▪ Central to an organisation’s H&S and risk management strategy in a
typical deployment providing complete visibility of compliance standards
and enabling day-to-day compliance management
▪ Developed, maintained & managed in-house by ~25 software heads
(Marlowe have increased investment in this area)
▪ Draws data from consultant apps, other Marlowe group systems,
customer record systems etc to present holistic view of health & safety
compliance in real-time
▪ Offered as a bespoke installation and as an ‘off the shelf’ product to
ensure appropriate price point available for all of Marlowe’s customers
35k properties11k users
~2m actions
3 million documents
20 external links
100+ automated
reports
19
VIRTUOUS CIRCLE OF COMPOUNDING REVENUE, PROFIT AND CASH FLOW GROWTH
Organic and M&A revenue
growth
Improved profit margins
Strong profit and free cash flow
Financially disciplined and
strategically compelling M&A
programme and operational
investment
▪ Organic drop-through
▪ 78% recurring revenues driven by regulation
▪ Customer density margin driver (network
effect)
▪ Operational improvements
▪ Technology driving efficiencies in service
delivery & customer experience
▪ Cost synergy benefits on acquisitions from
centralised back office
▪ Capital light
▪ High cash conversion
▪ Low capex requirements
▪ Focused investment and
capital allocation balanced
between M&A and organic
in order to generate optimal
returns in non-discretionary
service sectors
Optional injection
of new capital
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presentation.
The Company is under no obligation to provide any additional information or to update or revise the information in
this presentation or to correct any inaccuracies which may become apparent. This presentation may include certain
forward-looking statements, beliefs or opinions. There can be no assurance that any of the results and events
contemplated by any forward-looking statements contained in the information can be achieved or will, in fact, occur.
No representation is made or any assurance, undertaking or indemnity is given that any such forward looking
statements are correct or that they can be achieved.
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Compliance. Assured.