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Marlowe cautions of 'some impact' from Covid-19
12th May 2020 09:08
(Sharecast News) - Specialist services group Marlowe reported strong progress in the year to March 31 but warned that Covid-19 had resulted in "some impact" on its operations.
Marlowe reported substantial revenue and profit growth for the year, with revenues up 44% to approximately ?185m as organic growth accelerated to 7% thanks to a combination of strong new business sales, improved customer retention and successes with its cross-selling strategy.
The AIM-listed group expects adjusted underlying earnings for the year to be in line with market expectations and to demonstrate "good margin expansion".
As far as the coronavirus outbreak was concerned, Marlowe said staff were initially unable to gain access to certain client sites in order to complete contracted work. However, the group noted that site access issues had begun to improve in recent weeks and it now expects the majority of works deferred by customers to be recovered in the months ahead.
Chief executive Alex Dacre said: "Whilst we have seen a level of disruption from Covid-19, we expect the impact to be manageable and believe that our resilient business model positions us more favourably than most other sectors of the economy to benefit from a wider recovery in activity once restrictions are eased.
"We expect the health, safety and compliance service sectors that we occupy to remain in sharp focus going forward and are confident there will be significant growth opportunities for the group in the current year."
As of 0905 BST, Marlowe shares were up 2.58% at 415.45p.
Marlowe reported substantial revenue and profit growth for the year, with revenues up 44% to approximately ?185m as organic growth accelerated to 7% thanks to a combination of strong new business sales, improved customer retention and successes with its cross-selling strategy.
The AIM-listed group expects adjusted underlying earnings for the year to be in line with market expectations and to demonstrate "good margin expansion".
As far as the coronavirus outbreak was concerned, Marlowe said staff were initially unable to gain access to certain client sites in order to complete contracted work. However, the group noted that site access issues had begun to improve in recent weeks and it now expects the majority of works deferred by customers to be recovered in the months ahead.
Chief executive Alex Dacre said: "Whilst we have seen a level of disruption from Covid-19, we expect the impact to be manageable and believe that our resilient business model positions us more favourably than most other sectors of the economy to benefit from a wider recovery in activity once restrictions are eased.
"We expect the health, safety and compliance service sectors that we occupy to remain in sharp focus going forward and are confident there will be significant growth opportunities for the group in the current year."
As of 0905 BST, Marlowe shares were up 2.58% at 415.45p.