MBH Corporation PLC to issue dividend of EUR 0.5 cents per share after net profit almost tripled in 2019
- Audited financials confirm preliminary results
- Revenue up by 306% and net profit up by 190%
- Dividend proposal of EUR 0.5 cents per share represents dividend yield of around 1%
- Solid financial position with net cash of GBP 2.7 million
- New lean Board structure to be implemented
London, 29 May 2020 - The Directors of MBH Corporation PLC ("MBH"), a diversified investment holding company, are pleased to release the annual report for the year ended 31 December 2019 today highlighting the success of the Company's growth and diversification strategy. With this publication, MBH confirms the preliminary figures released end of April. The Company achieved a sales growth of 306% to GBP 50.8 million (2018: GBP 12.5 million) and a net profit of GBP 3.6 million - an increase of 190% compared to the previous year (2018: GBP 1.3 million). The 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).
Including the full-year results of the companies acquired in the course of 2019, annualised pro forma revenues of all MBH portfolio companies amounts to approx. GBP 59 million and corresponds to an increase of approximately 59% (December 31, 2018: annualised pro-forma revenues of GBP 37 million). Including the two acquisitions so far in 2020 (Samuel Hobson House (Health segment) and Robinson's Caravans (Leisure segment), annualised pro-forma revenues rose further to approx. GBP 78 million.
First dividend of EUR 0.5 cents corresponding to a dividend yield of 1%
The Board of Directors are proposing a dividend of EUR 0.5 cents per share to the Annual General Meeting to be held on 30 June 2020. This represents a dividend yield of around 1%. As a company with strong cash flow and profits, MBH is committed to returning profits to shareholders through dividend distributions or share buybacks.
Callum Laing, Co-Founder and CEO of MBH Corporation PLC: "We are very proud of the incredible growth we have shown and that within just one year of being listed we are in a position to issue our first dividend - and as previously always stated, it is very much our intention to continue to do so in the future. Whilst we would have liked, and originally had intended to, offer a dividend in the EUR 2-3 cents range, we have decided that in light of current events it is better to pay a reduced amount and retain earnings for eventualities unknown so far."
Solid financial position
The balance sheet of the group remains strong with a net asset position of GBP 43.3 million as of 31 December 2019. The Cash position was GBP 4.5 million and net cash (net of debt) amounted to GBP 2.7 million. Cashflow from operating activities amounted to GBP 5 million. The underlying equity ratio stood at 96%. The total number of shares outstanding amounted to 39.2 million at the end of 2019, up from 30.3 million at the end of 2018. The new shares were mainly issued as consideration for acquisitions. Still around 3 million shares are to be issued for acquisitions completed in the past.
New lean Board structure
The MBH Board of Directors has decided that with the success of our first full year of operations, the business model working well and a solid pipeline for future acquisitions, to implement a leaner Board structure. With the addition of more companies and thus more Principals on the Principals Board, much of the day-to-day work can be accomplished at that level with decisions pushed up to the Board as necessary.
The number of Directors on the Board will thus be reduced from six to three, with a potential 4th seat being added later. Allan Presland, non-executive Chairman, the Chief Financial Officer (CFO) Victor Tan and the non-executive members David Hallam and Toby Street will leave the Board effective as of 29 May 2020. Allan Presland will remain closely engaged with the company as a shareholder and as Managing Director of the MBH portfolio company Parenta. Victor Tan will continue his role as CFO but will no longer sit on the Board. David Hallam will remain associated to the company as an advisor.
Subject to shareholder approval at the 2020 Annual General Meeting, the Board of Directors has appointed Lana Coronado as the new non-executive Chair effective on 1 June. Lana Coronado is based in the United States, partner at Stone Peak Private Equity and has extensive entrepreneurial experience, particularly in the field of IT consulting and also worked in the finance industry, including stints at Credit Suisse and Merrill Lynch.
Callum Laing: "I want to thank the Board for the incredible work they have done to deliver such a successful first year. With the growth of the companies in the group, we are now able to move to a leaner Board structure, whilst still retaining the expertise of those that will leave the Board. I am very much looking forward to welcoming Lana as new Chair of the Board. Lana has a wealth of entrepreneurial experience across many areas and will be invaluable as we are approached by more North American companies and investors looking to join us."
The outlook for 2020 is unchanged. The businesses within MBH recorded growth in earnings in the first quarter when compared to the same quarter in 2019. Due to the ever changing situation with the global Covid-19 pandemic, 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 as in 2019.
 Calculation with Xetra closing price 21 May 2020
Group Performance 2019 (audited)
|in thousand GBP
The full Annual Report 2019 is available on the company website: https://www.mbhcorporation.com/financial-reports
Investor webinar today at 15:00 CET
MBH CEO Callum Laing and the CFO Victor Tan will host an investor webinar to discuss the 2019 results at 15:00 CET today. Please use the following link to register for the webinar:
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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