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Close Marlowe (MRL)

Close Marlowe (MRL) at market (439.6p)

We’re closing our position in Marlowe following confirmation that the company has agreed to a takeover offer from Mitie, one of the stocks covered by our FTSE Investor product. While the proposed 466p offer represents a 26.5% premium to Marlowe’s price prior to bid speculation, it’s still below our average entry price, meaning we will be exiting the position at a loss. This wasn’t the outcome we had hoped for when we backed Marlowe as a quality consolidator in the fragmented compliance and risk management space, but the stock’s performance has lagged amid execution missteps and rising costs.

The sale to Mitie brings a close to what’s been a drawn-out period of underperformance, but it does at least allow us to reallocate capital to more promising opportunities. While Mitie clearly sees strategic value in Marlowe’s customer base and capabilities, the terms of the deal leave limited upside from here for existing shareholders. With the stock now effectively capped by the takeover price, we think it’s the right time to move on.

Profit / Loss = -53%

MRL Daily Candle Chart