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Marlowe - Buys Ellis Whittam for £59m

December 2020

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • MRL
  • Price:
  • 535p
Only recently covered by SCSW, Marlowe has announced a transformational acquisition together with a share placing. It is buying Ellis Whittam for  £59m, all upfront. To help fund the deal, Marlowe has placed 5.4m shares at 547p to raise £30m.Founded in 2004, Chester-based Ellis Whittam provides outsourced employment law, HR and health & safety services. The company provides its services via a fixed-fee subscription model to over 3,300 SMEs with an average contract value of £4,100 a year and an average contract term of 3.9 years: 90% of sales are recurring. It has 180 staff including 60 employment lawyers and 40 health & safety consultants. Services include drafting and reviewing contracts, policies and procedures and managi ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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