Mitie agrees £366m deal to buy Lord Ashcroft-founded firm Marlowe
Mitie said it hopes to cut costs by £30 million a year across the combined group after the takeover.
Marlowe is a provider of fire safety services, which is listed on the London's Aim junior market, and employs around 3,000 workers.
FTSE 250-listed Mitie employs about 72,000 staff in areas from cleaning and security to maintenance.
Phil Bentley, chief executive of Mitie, said: 'Adding Marlowe's circa 3,000 highly respected colleagues to Mitie's capabilities and providing access to Mitie's clients will generate significant revenue growth opportunities as well as immediate cost efficiencies.
'We are excited about the next chapter in Mitie's history to become a leading facilities compliance provider.'
Lord Ashcroft, interim non-executive chairman of Marlowe, added: 'The acquisition represents excellent value for Marlowe shareholders.'
'I have been consistent since taking up the role of interim chairman in June 2024 that my aim was to maximise shareholder returns and the acquisition will be the final piece in that jigsaw,' he said.
Lord Ashcroft – a former deputy chairman of the Conservative Party – co-founded Marlowe with Alex Dacre, its former chief executive.
He became non-executive chairman on an interim basis when Mr Dacre left in June last year.
He is the latest shareholder in Marlowe, with an 18.9% stake.
In Mitie's full year figures also out on Thursday, it reported an 11% rise in underlying operating profits to £234 million for the year to March 31.
But statutory pre-tax profits fell to £145.4 million from £156.3 million the previous year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
2 hours ago
- Telegraph
Rachel Reeves's inheritance tax raid has killed our portfolio. Here's our first step to salvaging it
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Inheritance tax relief on Aim shares was halved in last year's Budget. This means that, from April next year, the effective inheritance tax rate on qualifying Aim shares that have been held for at least two years will be 20pc instead of the current 0pc rate. Clearly, this could still represent a substantial tax saving in some cases. However, when coupled with the potential for further tax changes in future budgets, in Questor's view, it is no longer sufficiently appealing to justify the existence of our Aim portfolio. Indeed, by solely focusing on Aim shares, we have previously accepted the opportunity cost of missing out on high-quality companies that are listed elsewhere in the UK stock market in order to obtain a significant inheritance tax saving. Given that the inheritance tax saving from Aim shares could become even less enticing, this column feels that it is more logical to instead allow a broader range of companies to be held in the portfolio that can potentially deliver higher long-term returns. As a result, we will no longer consider just inheritance tax relief and will now include UK-listed companies from outside the FTSE 100 in our portfolio. The reason for excluding FTSE 100 stocks is twofold. Firstly, it limits the crossover with our wealth preserver and income portfolios, which are dominated by FTSE 100 stocks. Secondly, we wish to retain the portfolio's reliance on UK-focused firms because of our upbeat stance on the domestic economy's long-term prospects. Given that FTSE 100 members generate over 80pc of their revenue from abroad, versus 55pc for the FTSE 250, a portfolio that focuses on small and mid-cap stocks fits the bill. With that in mind, FTSE 250 member Cranswick becomes the first addition to our new-look portfolio. The food producer has been tipped several times by Questor over recent years, with its share price having risen by 71pc since our 'buy' recommendation in July 2022. In doing so, it has outperformed the FTSE 250 by 55pc. The company's recently released first-quarter trading statement showed that it continues to make encouraging progress. Like-for-like revenue rose by 7.9pc, with strong volume growth leading its top line higher. The company confirmed that it is on track to meet financial guidance for the full year, while its medium-term outlook remains upbeat. Indeed, the firm is expected to generate 7pc annualised earnings growth over the next two financial years. Some investors, of course, may feel that Cranswick's earnings multiple of 19.2 is a steep price to pay given its good, but not great, profit growth forecasts. Indeed, there are a wide range of small and mid-cap shares that offer superior earnings growth prospects over the coming years. However, in this column's view, the firm's relatively dependable financial performance as a result of its defensive characteristics means it represents good value for money. Furthermore, the company's solid financial position and substantial competitive advantage highlight its status as a high-quality business that is worthy of a premium valuation. For example, despite a 73pc rise in net debt during its latest financial year, the company's net gearing ratio amounts to just 18pc. Meanwhile, net interest costs were covered over 20 times by operating profits last year. Despite its modest use of leverage, return on equity stood at 14pc in the company's latest financial year. This suggests the firm has a clear competitive advantage, while a rise in its operating profit margin of 48 basis points to 7.6pc last year further indicates a continued improvement in the firm's competitive position. To make way for the addition of Cranswick, hospital software specialist Craneware will now be removed from the small and mid-cap portfolio. It has produced a 28pc capital gain since being added in January 2018. This represents a 57pc outperformance of the FTSE Aim All-Share index. In Questor's view, Cranswick offers a favourable long-term investment opportunity. Its solid fundamentals and upbeat, as well as relatively dependable, growth outlook mean it has scope to deliver further capital gains and index outperformance over the coming years. Ticker: CWK
Times
3 hours ago
- Times
We want to sell our listed house — do we need an EPC?
Q. We want to sell our listed house. The estate agents say we may not need an energy performance certificate (EPC) but should get one anyway. Do we need an EPC for a listed house? A. EPCs record the energy efficiency of buildings, rated from A to G. It is a common misconception that they are not needed for listed properties. It is far more complicated than that. The basic requirements are set out in part 2 of the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007. Regulation 6 requires a valid EPC to be available whenever a building is to be sold. The maximum penalty for marketing or selling a property without a valid EPC is £5,000, although prosecutions are rare. • Read more expert advice on property, interiors and home improvement Under regulation 5, certain properties are exempt from these requirements, including 'buildings officially protected as part of a designated environment or because of their special architectural or historical merit'. Although this potentially exempts listed buildings and houses in conservation areas, they are only excluded if 'compliance with certain minimum energy performance requirements would unacceptably alter their character or appearance'. For example, government guidance notes that many typical EPC recommendations — such as double glazing, new doors and windows, external wall insulation and external boiler flues — would probably cause unacceptable changes in most historic buildings. This presents a problem in that listed building owners are unlikely to know whether they will need an EPC without first asking an EPC assessor to advise on what energy efficiency measures are needed. Owners may also need to consult with their listed buildings officer to anticipate queries from potential buyers about any advice set out in the EPC. In addition, in December 2024, the government launched a consultation about reforms to the regime, which include proposals to bring all listed buildings within the EPC net. It is probably best to commission an EPC before marketing a listed house, even if it turns out that a valid certificate is not required by legislation. Mark Loveday is a barrister with Tanfield Chambers. Email your questions to
Reuters
18 hours ago
- Reuters
Standard Bank says CEO, CFO to retire by end of 2027
JOHANNESBURG, Aug 14 (Reuters) - Standard Bank Group (SBKJ.J), opens new tab said on Thursday that its Chief Executive Officer Sim Tshabalala and Chief Financial Officer Arno Daehnke would retire by the end of 2027 as it reported higher headline earnings for the first six months of the year. The announcement follows a review of the bank's retirement age for its executives that decided to increase the normal age from 60 to 63 years. But it said that decision would not apply to Tshabalala or Daehnke, who will be subject to the existing retirement age of 60. "The decision, taken in line with the group's leadership succession planning, means that both Mr Tshabalala and Mr Daehnke ... are expected to retire toward the end of 2027," the bank said in a statement. Tshabalala has served as CEO since 2013, while Daehnke has been CFO since 2016. "Sim and Arno's contributions over more than a decade have been instrumental to Standard Bank's growth," the statement said. The bank, Africa's biggest by assets, on Thursday reported headline earnings of 23.8 billion rand ($1.36 billion) for the first half of 2025, up 8% from 22.0 billion rand in same period a year earlier. Its return on equity improved to 19.1%, up from 18.5%. Its Johannesburg-listed shares were up about 3% by 0925 GMT. ($1 = 17.5615 rand)
