Marlowe PLC on Wednesday impressed investors with a cheerful update on its year-to-date, as the software and services firm proves to be well-situated to manage a challenging economic environment.

In the four months to July 31, the business safety and regulatory compliance-focused company said revenues were 66% higher year-on-year. Over 85% of which are recurring, it noted.

Shares in Marlowe were up 6.3% at 722.55 pence in London on Wednesday morning.

On an organic basis, revenue growth was in the high single digit range, which it expects to continue for the rest of the financial year.

Marlow noted ‘encouraging’ new business in Governance, Risk & Compliance and Testing, Inspection & Certification, and said its integration programme for acquisitions is on track.

Regarding the wider macroeconomic headwinds, Marlowe noted its offering is largely non-discretionary, and the only material inflationary pressure it faces is wage inflation. It has mitigated this through inflation-linked contract arrangements with clients, and through increasing pricing on contracts.

Looking ahead, it expects revenue to grow by 9% for the full year on an organic basis. It also anticipates ‘significant’ growth in annual earnings per share.

‘We remain confident of achieving our run-rate targets of £500 million of revenues and £100 million of adjusted earnings before interest, tax, depreciation and amortisation materially ahead of the end of financial 2024, as originally targeted, as we continue to build our positions across the highly attractive and resilient compliance markets that we occupy,’ the firm said.

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