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MBH Corporation reports growth in key areas despite challenging 2020 for small business

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DGAP-News: MBH Corporation Plc / Key word(s): Annual Results/Dividend
30.04.2021 / 10:39
The issuer is solely responsible for the content of this announcement.

MBH Corporation reports growth in key areas despite challenging 2020 for small business

MBH Corporation PLC continued its ambitious growth plans throughout 2020, opening in new international markets and expanding into multiple new industries. Although individual companies were hampered by the impact of Covid-19, MBH was still able to grow its revenue and is in a position to offer a dividend to its shareholders.

London, 30 April 2021 - 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 2020 following a highly challenging year for the business community as a whole. Amid a global pandemic, MBH achieved a sales growth of 19% to GBP60.4 million (2019: GBP50.8million) and a net profit after tax of GBP1.4 million - (compared to the previous year 2019: GBP3.6 million). The financial figures include the results of 8 companies for the full year and proportionately 12 companies acquired during the financial year ended 31 December 2020.

Continued commitment to dividend payment
In line with its stated commitment of returning profits to shareholders, the MBH Board is proposing a repeat of the 2019 dividend of 0.005 Euro cents. This represents a dividend yield of approximately 2%. Shareholders will be given the option of receiving the dividend in cash or in additional shares. Further details around distribution will be announced at the AGM.

All Principals in the Group have already indicated their preference for additional shares demonstrating their belief and commitment to the Group.
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Callum Laing, CEO of MBH Corporation plc, said: "2020 was a very active year for us and despite the pandemic's impact on global market conditions we were able to acquire more long-standing and outstanding companies with experienced and entrepreneurial leadership teams. They are now poised to take advantage of the benefits of being a member of the MBH Group. We believe our shareholders should benefit from our progress and be rewarded for their confidence in the model and consequently are proud to be able to offer this dividend."

Solid financial position
The balance sheet of the Group remains strong with a net asset position of GBP59.8 million. Cash and cash equivalents amounted to GBP5.8 million as of 31 December 2020 and the debt to equity ratio slightly below 1. The total number of shares outstanding amounted to 70.5m at the end of 2020, up from 39.2m at the end of 2019. The new shares were mainly issued as consideration for acquisitions and contingent consideration payments.

Continuing growth and diversification
In 2020 MBH continued its growth and diversification strategy acquiring 12 profitable and well-established companies. Adding 4 new industry verticals and expanding to 3 new countries, the Construction Services segment remains the largest vertical within the MBH portfolio and was a sector that was hard hit by the pandemic. As a result, the construction vertical EBIT was significantly down on the previous year.

All other verticals recorded revenue growth in 2020.

Callum Laing, CEO of MBH Corporation plc, commented: 'In 2020 we have clearly demonstrated the resilience of our Group which comes after strong organic growth of our companies in 2019. I would like to extend my most sincere thanks to the company Principals who have been unfailingly proactive, innovative and positive in supporting their clients and their teams during this period. This has been key in allowing MBH to deliver a solid performance at a time when many businesses have not been so fortunate. As the small business sentiment moves from survival to growth, 2021 promises to be an exciting year for all involved.'

Group Performance 2020 (audited)

in thousand GBP

2020

2019

Revenue

60,401

50,780

EBIT

1,787

4,045

Net Profit after tax

1,367

3,618



Outlook 2021
Whilst MBH does not offer guidance to the market, it does intend to continue its growth through acquisitions at a similar pace to the previous two years in order to continue adding new companies in order to strengthen the group.

As always the Board remains very focused on finding the right businesses that it believes will continue to add value to shareholders for years to come.

The full Annual Report 2020 is available on the Group's website: www.mbhcorporation.com/financial-report-2020

ENDS

 

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 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
Perception A, Phil Anderson & Charlie Nelson, phil@perceptiona.com, +44 (0)776 749 1519
 


30.04.2021 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

Language:

English

Company:

MBH Corporation Plc

Studio 7-9, Royal Patriotic Victoria Building, Joh

SW18 3SX London

United Kingdom

E-mail:

info@mbhcorporation.com

Internet:

https://www.mbhcorporation.com/

ISIN:

GB00BF1GH114

WKN:

A2JDGJ

Listed:

Regulated Unofficial Market in Dusseldorf, Frankfurt

EQS News ID:

1191211


 

End of News

DGAP News Service

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