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Marlowe PLC on Wednesday confirmed it will return £225 million through a special dividend and buyback after receiving regulatory approval for the sale of assets.
The London-based business-critical services and software company reported ‘good financial and strategic progress’ in the financial year ended March 31.
Continuing revenue from Testing, Inspection, and Certification is expected to be £292 million, up 7.1% from £272.6 million last year.
Marlowe anticipates an additional £111 million for its Occupational Health operations.
Adjusted earnings before interest, taxes, depreciation, and amortisation for continuing operations will likely be in the region of £49 million, including the allocation of certain head office costs to discontinued operations.
Last year adjusted Ebitda stood at £82.7 million, and £48.8 million on a statutory basis.
As announced in February, Marlowe plans to divest from certain Governance, Risk & Compliance assets. Once it receives regulatory approval, the sale worth £430 million is expected to complete on May 31.
Chair Kevin Quinn said: ‘[The] divestment clarifies the group’s forward strategy in the highly attractive and regulated compliance service markets and our focus on consistent organic growth, margin enhancement and the disciplined allocation of capital.’
Proceeds will be used to repay the company’s current debt facility, although some will be returned to shareholders through a special dividend and a newly announced share buy back programme.
The dividend will return £150 million, equating to £1.55 per share, and Marlowe said that a buyback worth £75 million will follow afterwards.
The company clarified that shares will be repurchased at a price no more than 5% above the average market price for the preceding five business days.
Marlowe shares were up 8.7% to 580.50 pence each in London on Wednesday afternoon.
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