MBH Corporation PLC builds on 2019 growth momentum with revenues climbing 31% in first half of 2020
- Revenues up by 31% to GBP27.4 million in 1H 2020, despite impact of Covid-19 pandemic
-
EBITDA increase by 13% to GBP1.5 million year-on-year
-
MBH continues growth course with 3 acquisitions in 1H 2020 and 8 as of 2nd September 2020
-
MBH raises M&A growth target and expects at least 10 acquisitions in full-year 2020
London, 30 September 2020 - The Directors of MBH Corporation PLC ("MBH"), a diversified investment holding company, are pleased to release the results for the half year ended 30 June 2020, highlighting the success of the Company's growth and diversification strategy.
In a year where MBH paid its maiden dividend, as many AIM listed stocks cut or cancelled theirs, the Company achieved revenue growth of 31% to GBP27.4 million (1H 2019: GBP21.0 million) and a stable net profit of GBP0.7 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 13% to GBP1.5 million (1H 2019: GBP1.3 million). The financial figures include the results of three companies acquired in 1H 2020 (Samuel Hobson House, Robinsons Caravans and Logistica Training).
Callum Laing, CEO, MBH Corporation PLC: "After a strong first quarter in 2020 for our portfolio companies, the rest of the year 2020 was clearly marked by the COVID-19 pandemic and was accordingly dominated by new challenges. However, it was interesting to see how our companies and the seasoned entrepreneurs learned from each other during the pandemic and adapted quickly to the challenging environment. We are therefore all the more proud of the fact that we have continued to grow as a group in the first half of 2020."
Solid financial position
After paying a dividend earlier in the year, the balance sheet of the Group remains strong with a net asset position of GBP51.5 million as of 30 June 2020, by comparison, as of 31 December 2019 the net asset position was GBP43.3 million.The Cash position for 1H 2020 was GBP4.1 million, and the net cash position amounted to GBP3.5 million. The total number of shares outstanding as at 30 June 2020 was 59,506,921.
New Bond listing
In June 2020, MBH launched a medium term bond programme that enables MBH to finance acquisitions in line with its AgglomerationTM strategy. A total of EUR50 million has been approved. The bond is listed on the Irish Stock Exchange (Euronext Dublin) and in the Open Market of the Frankfurt Stock Exchange since July 17 2020.
The key terms of the bond were as follows:
- 5-year maturity rate
-
Up to 5% coupon rate per annum payable semi-annually
-
Unsecured bond
Callum Laing comments: "Unlike conventional bonds used for raising funds, this bond is more commonly used as part of the consideration for incoming business owners. This has two clear purposes of offering a hedge to small business owners against any share price volatility, and also allowing us to proceed with accretive acquisitions regardless of the prevailing stock price."
Continued momentum in acquisitions - at least 10 acquisitions planned for 2020
At the start of the year, CEO Callum Laing stated an ambition to bring a further five to ten companies into the MBH portfolio by year end. In the first half of the year, MBH acquired three new companies - Samuel Hobson House, Robinsons Caravans and Logistica Training. Year to date 2020 MBH has acquired 8 companies during 2020, including its first US acquisitions. In the final quarter of the year MBH intends to continue the momentum and acquire further small and mid-sized business.
Callum Laing adds: "We expect to exceed the target announced at the beginning of the year and finalise at least 10 acquisitions in the full-year 2020. These companies do more than allowing us to incorporate new revenues and profits in an uncertain market, in that they bring in new talent, wisdom and opportunities that can be leveraged as we continue to grow."
The complete 2020 half-year report is available on the company's website at www.mbhcorporation.com/financial-reports
Webinar 'Meet the Principals':
Join all our Principals on 7th October, 3-4pm UK time to hear how they have performed over the last six months and what they have learnt. Please register in advance for this webinar here: https://zoom.us/webinar/register/WN_efB255oASEW2JhB-Uq3dhA
About MBH
MBH Corporation plc is a diversified investment holding company, listed on the Frankfurt and Dusseldorf Stock Exchanges. The company acquires small to medium bfd 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.
www.mbhcorporation.com
Contacts for IR and media enquiries:
MBH Corporation plc, Charlotte Williams, charlotte@unity-group.com, +44 (0)770 396 3953
Kirchhoff Consult AG, Anika Heske, anika.heske@kirchhoff.de, +49 (0)40 609186 39
30.09.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
MBH CORPORATION PLC 
