Marlowe looks troubled, James Latham terrific
News covered here include questionable results from a highly acquisitive services business where adjusting items are excessive and cash flow to date does not support the sky-high valuation. There was also a disappointing update from a video game developer, where plenty of investment has also failed to deliver the desired returns. Elsewhere one of our Bonkers Bargains issued another positive update bringing yet another upgrade – the shares still look cracking value. An AIM elder has also showed the way, with excellent results and not an adjusting item in sight! Read on here for this and other news from AIM. (Free to read)
Marlowe: accident waiting to happen?The latest results from Marlowe (AIM:MRL), which refers to itself as a “leader in business-critical services and software which assure safety and regulatory compliance”, did not instil much confidence. The opening highlights present the usual inflated adjusted numbers showing an operating profit up 53% to £64.3m on revenue 47% higher at £466m, most of which was driven by 11 acquisitions made in the year at a stated cash cost of £56m. The statutory results are far less impressive, with a reported loss of £6.9m after plenty of amortisation and, more significantly, loads of restructuring expenses and…