DGAP-News: MBH Corporation PLC releases Annual Report 2018 with strong financial results

MBH Corporation PLC releases Annual Report 2018 with strong financial results

• 2018 Highlights
• Pro-forma revenue growth of 21.8% to GBP 30.3 million
• EBITDA growth of 6% from last year
• Successful listing of MBH shares on Frankfurt and Dusseldorf Stock Exchange
• Acquisitions in the Education Sector and the Construction sector
   
• 2019 Plans
• Continue strong organic growth of existing portfolio companies
• 15 to 20 acquisitions planned for full-year 2019

London, 3rd May 2019 - MBH Corporation plc ("MBH"), a diversified investment holding company, is pleased to release the Company's 2018 Annual Report which looks back on a successful 2018 financial year with a strong acquisition track record.

The Directors of MBH Corporation released the Company's first Annual Report today highlighting the success of the Company's growth and diversification strategy. On a pro-forma basis, year-on-year revenue grew by 21.8% to GBP 30.3 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 6.4% to GBP 3.3 million, giving an EBITDA margin of 10.9%.

These pro-forma figures however exclude the financial results of subsidiary du Boulay Contracts, which was only acquired in December 2018.

Growth in both verticals Education and Construction Services

In August 2018 the group completed the acquisition of the UK based Lara Group plc with its wholly owned subsidiaries Parenta Training Ltd, Parenta Group Ltd and Acacia Training Ltd to add profitable and well-managed companies to the Education sector of MBH. In this segment MBH generated revenue growth of 19.8% to GBP 10.2 million (2017: GBP 8.5 million).

In September 2018, MBH also expanded its portfolio in the Construction Services sector. The company completed the acquisition of UK based Corsora Ltd and its wholly owned subsidiary from New Zealand, Cape Ltd. There was a further acquisition of the UK based, du Boulay Contracts Ltd in December 2018. Revenue in the Construction Services sector, excluding the recorded sales of du Boulay, improved by 22.8% to GBP 20.1 million in the 2018 financial year.

"2018 was about putting the foundations in place and more importantly we have done our first few acquisitions. The Companies we target have been well documented; low debt or debt-free, profitable, owner operated and cash generating with 100% ownership moving to MBH. Our model is and will continue to be heavily diversified, geographically and by sector." emphasised Callum Laing Non-Executive Chairman of MBH.

"We are very pleased with the first set of results produced by the consolidated group. Revenue and EBITDA for the three founding companies were up 22% and 6% respectively on 2017. Earnings per share for 2018 which is the key financial metric for MBH was GBP 0.11 per share which was up by 58% on the 2017 pro-forma EPS. Retained earnings as at 31 December 2018 were GBP 1.25 million which provides us with a solid position in 2019 to assess the ability for the Group to return excess capital to our shareholders either in the form of a dividend or a share buyback," says Victor Tan, Chief Financial Officer.

Successful stock exchange listings in Germany

The UK's Financial Conduct Authority approved the prospectus of MBH in 2018. As result MBH's shares have been listed on the Frankfurt Stock Exchange, upgraded on the primary market of the Düsseldorf Stock Exchange and admitted to trading via the XETRA platform since mid-November 2018.

Earnings to be invested in further acquisitions

The Board of Directors have taken the view that the flexibility and opportunities offered by a larger capital base can compound the creation of shareholder value in future years. As such, it has decided to invest the available funds from the group's first year of operations in further portfolio acquisitions instead of paying out dividends. That said, the Board is committed to the return of profits to shareholders through dividend distributions or share buybacks and will intends to do either in the future.

Acquisitions after the end of the financial year 2018

In January 2019, MBH acquired the assets of the International School of Beauty Therapy to strengthen its subsidiary Acacia Training Ltd and its leading position in the UK beauty education sector. The asset acquisition allows Acacia to hold the prestigious CIDESCO license, an accreditation that is recognised worldwide as one of the best qualifications in the sector.

MBH has also agreed terms to acquire 100% of Guildprime Specialist Contracts Ltd as a tactical acquisition for the existing subsidiary, du Boulay Contracts Ltd in April 2019. Guildprime Specialist Contracts Ltd generated revenues of GBP 5.4 million for the year ended 30 September 2018, is profitable and debt-free. This acquisition will compliment and expand MBH's existing construction services vertical including du Boulay Contracts Ltd and Cape Ltd. The completion of the transaction is expected in the next month and is subject to the successful execution of the share purchase agreement.

Further growth expected for 2019

Each of the Companies with MBH have excellent organic growth prospects for 2019 which are magnified by being within the supportive nature of the MBH environment. This eco-system encourages further acquisitions and support from sister companies within the Group.

Based on the current group portfolio, 2019 revenue and EBITDA are expected to increase by 7% and 3% respectively. MBH plans to complete approximately 15-20 value accretive acquisitions in the full-year 2019. These acquisitions are not included in the guidance and each of them will increase revenue and EBITDA of the group further.

For more detailed information, please find the Annual Report 2018 for download under: https://www.mbhcorporation.com/financial-reports

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 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, accretive acquisition of excellent companies.

www.mbhcorporation.com

Contacts for IR and media enquiries:

MBH Corporation plc, Charlotte Fordham, charlotte@unity-group.com, +44 (0)770 396 3953

Kirchhoff Consult AG, Nicole Schüttforth, nicole.schuettforth@kirchhoff.de, +49 (0)40 609186 64