Original-Research: MBH Corporation plc - von GBC AG 
 
Einstufung von GBC AG zu MBH Corporation plc 
 
Unternehmen: MBH Corporation plc 
ISIN: GB00BF1GH114 
 
Anlass der Studie: Research Comment 
Empfehlung: BUY 
Kursziel: 1,82 EUR 
Kursziel auf Sicht von: 31.12.2021 
Letzte Rating?nderung: 
Analyst: Cosmin Filker, Marcel Goldmann 
 
With four further acquisitions, our expectations were exceeded; price target 
slightly increased; share clearly undervalued 
 
MBH Corporation plc (MBH for short) has continued to show a high level of 
acquisition activity compared to our last research report (see report dated 
08.10.2020), as has been the case so far this year. On 30 October, the 
company had further strengthened its construction segment with the 
acquisition of 100% shares in Australian Cobul Constructions ('Cobul'). 
Cobul, which was founded in 2001, primarily acts as a developer of 
commercial properties, mainly in the public sector. According to MBH 
management, average annual revenues for the past financial years are A$11.6 
million (GBP6.5 million) and as at 30 September 2020, the company has a 
12month EBIT of A$2.7 million (GBP1.5 million). The purchase price of up to 
GBP 8.0 million is to be paid primarily through the listed 5.0% convertible 
bond. Only a small portion is to be paid through the issue of MBH shares. 
 
In mid-November 2020, the acquisition of NVQ Nail & Beauty Specialists 
Training Academy Ltd ('NVQ') marked the tenth acquisition of the current 
financial year. With revenue of ?0.3m generated in the last financial year 
(ending March 2020) and a positive earnings level, this company is a 
comparatively smaller acquisition. It is a strategic acquisition, as NVQ had 
already worked together with Acacia Training, which belongs to the MBH 
Group. Accordingly, this company will be included under Acacia Training. The 
purchase price of approximately GBP 0.6 million will be covered exclusively 
by the issue of convertible bonds. 
 
On 26 November, MBH announced the further strengthening of its education 
segment through the acquisition of Academy One Group, a leading provider of 
sports education programmes. In the last financial year (ending 31 March 
2020), Academy One had achieved revenues of ?3.7m and should, in our view, 
show a positive earnings level. In this acquisition, too, the total purchase 
price of up to GBP 3.0m will be paid largely via a listed bond. 
 
Finally, on 14 December 2020, MBH announced the acquisition of Victoria 
Gosden Travel Ltd. (VGT), a taxi company based in the UK. With revenues of 
approximately GBP 2.0 million, the company generated EBIT of GBP 0.28 
million in 2020. Based on this, the purchase price of GBP 1.3 to 2 million 
also appears very attractive for this investment. 
 
In our last research study in October 2020, we had only assumed the 
acquisition of two additional companies, which means that this assumption 
has now been exceeded. Consequently, we are adjusting our revenue estimates 
upwards for the current financial year and, on the basis of the higher 
forecasts, for the coming financial years. At the same time, we are reducing 
our earnings forecasts for 2020. These are to be understood as a consequence 
of the lower-than-expected construction sector, which was particularly 
affected by the impact of the Covid 19 pandemic. Two lockdowns in the UK and 
the increased restrictions in New Zealand have led to project postponements 
into the coming financial year. 
 
We have calculated a new target price of GBP 1.64 (previously: GBP 1.55) or 
EUR 1.82 per share in our updated DCF valuation model. The slight price 
target increase is a consequence of our higher sales forecasts for the 
current and the coming financial years. We also assume that the shipped 
orders in the construction segment can be processed in the coming financial 
year. Based on the current price level of EUR 0.38, which is significantly 
lower, we continue to give the share a BUY rating and see it as clearly 
undervalued. 
 
Die vollst?ndige Analyse k?nnen Sie hier downloaden: 
http://www.more-ir.de/d/21948.pdf 
 
Kontakt f?r R?ckfragen 
J?rg Grunwald 
Vorstand 
GBC AG 
Halderstra?e 27 
86150 Augsburg 
0821 / 241133 0 
research@gbc-ag.de 
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Offenlegung m?glicher Interessenskonflikte nach ? 85 WpHG und Art. 20 MAR 
Beim oben analysierten Unternehmen ist folgender m?glicher 
Interessenkonflikt gegeben: (5a,11); Einen Katalog m?glicher 
Interessenkonflikte finden Sie unter: 
http://www.gbc-ag.de/de/Offenlegung.htm +++++++++++++++ 
Date (time) completion: 16.12.20 (08:32 am) Date (time) first transmission: 
16.12.20 (10:00 am) 
 
=------------------?bermittelt durch die EQS Group AG.------------------- 
 
F?r den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. 
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung 
oder Aufforderung zum Abschluss bestimmter B?rsengesch?fte.

(END) Dow Jones Newswires

December 16, 2020 04:02 ET (09:02 GMT)