MBH Corporation PLC grows dynamically in 2019 and intends first dividend payout in 2020
Highlights 2019 financial year
- Revenue up by 306% from last year to GBP 50.8 million
- EBIT grows by 179% to GBP 4.0 million
- Net income for the year reaches GBP 3.5 million
- Strong organic growth with a 19% increase in EBIT
- Successful acquisition strategy grew MBH's portfolio to 10 companies in 2019
- First dividend payment intended for 2019
- Outlook 2020: A similar number of acquisitions intended
London, 30 April 2020 - MBH Corporation plc ("MBH"), a diversified investment holding company, looks back on a successful 2019 financial year with strong growth. Based on the preliminary figures for 2019, MBH generated revenues of GBP 50.8 million, an increase of 306% (2018: GBP 12.5 million). Earnings before interest and taxes (EBIT) amounted to GBP 4.0 million, up by 179% from the previous year (2018: GBP 1.4 million). Net income for the year also increased by 179% to GBP 3.5 million (2018: GBP 1.2 million).
MBH has grown both organically and through acquisitions. The companies that have been part of MBH's portfolio since its listing in 2018 achieved significant organic growth with an increase in sales of 16% and EBIT of 19%. The acquisitions in 2019 contributed approximately GBP 5.7 million to MBH's revenues and GBP 0.8 million to EBIT.
The Construction Services segment accounted for GBP 41.4 million of the Group's Revenues, followed by Education with GBP 9.4 million.
The preliminary financial figures include the results of 4 companies for the full year (Acacia, Parenta, Du Boulay and Cape), proportionately 4 companies acquired during the year (UK Sports, KS Training, Guildprime and Gaysha) and 2 assets acquisitions (Beauty College and Apprentice Supermarket). The demerger of the engineering company Asia Pacific Energy Ventures Pte Ltd ("APEV"), announced on April 22, is retrospectively effective so that APEV is not included in the financial statements for the 2019 financial year.
MBH continues to have a solid financial position. Cash and cash equivalents amounted to GBP 4.5 million as of 31 December 2019 and the equity ratio is 94 percent.
Group Performance (preliminary figures for 2019)
|in thousand GBP
MBH establishes new segment and continues to grow in existing segments
MBH Corporation plc continued its growth and diversification strategy in 2019, acquiring 6 profitable and well-managed companies. The company strengthened its Construction Services segment with the acquisition of Guildprime Specialist Contracts Ltd and Gaysha Ltd. MBH also grew in the Education segment by acquiring a prestigious educational license from the International School of Beauty Therapy and by acquiring UK Sports Training Ltd, KS Training Ltd and Apprentice Supermarket. In August, MBH also announced the acquisition of Samuel Hobson House and, with it, the establishment of its new Health segment in which the acquisition was completed in January 2020.
MBH intends first dividend payment
MBH expects earnings per share ('EPS') for 2019 to be around GBP 0.10 per share. To benefit shareholders in the success of the financial year, MBH intends to pay its first dividend to shareholders this year. The final amount of the proposed dividend will be decided before publication of the audited 2019 Annual Report. Due to the ongoing Covid-19 situation, and for reasons of prudence, the Board is likely to suggest a lower per share dividend then was anticipated.
Callum Laing, CEO of MBH Corporation plc: "2019 was a very successful year for us and we were able to drive forward our growth strategy. We have been able to acquire 6 more outstanding and long-standing companies with experienced managing directors and leadership teams who can now take advantage of the benefits of being a member of the MBH Group. Especially in times of Covid-19 this cohesion is of great importance. As we have already announced, our shareholders should benefit from our success and we are pleased to be planning to pay a dividend for the first time this year".
As a consequence of the global Covid-19 situation, MBH will not publish a forecast for business development in 2020 for the time being. However, MBH plans to continue its diversification strategy in 2020 and to acquire companies from new industries. With the completion of the acquisition of Samuel Hobson House (health segment) and the takeover of Robinson's Caravans (Leisure segment), MBH has already established two new segments this year. The Group plans to continue to acquire companies in existing and new industries and expects to acquire a similar number of companies in 2020.
Further information will be published on 29 May 2020 in the Annual Report 2019 on the company website: https://www.mbhcorporation.com/2019-results
MBH Corporation plc is a diversified investment holding company, listed on the Frankfurt and Dusseldorf Stock Exchanges. The company acquires small to medium enterprises across multiple geographies and sectors that are well established, profitable and looking to scale. By leveraging the Agglomeration strategy, MBH Corporation plc is able to create substantial shareholder value through the consistent and accretive acquisition of excellent companies.
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