MBH Corporation PLC (FRA:M8H, OTCQX:MBHCF, ETR:M8H) reported a strong bounce back across the board from its diverse group of companies in the first half of 2021, with underlying earnings jumping 271% on revenue up 81%.
The UK-registered holding company acquired four companies in the period and another since, taking its total to 25 companies across eight industries in five countries.
Revenues reached £49mln from £27.4mln a year ago, while earnings before interest and tax grew to £3mln from £0.8mln last time and earnings per share rose 82% to 2.6p per share.
A £1.9mln net profit after tax was recorded and £3.8mln of cash was generated from operating activities, leaving a net cash position of £6.3mln at the half-year stage, including bank overdrafts.
“We are pleased to deliver this strong half-year report and solid growth in both revenue and EBIT,” said chief executive Callum Laing.
“Although various pandemic related lockdowns and restrictions are still in place for the group's Antipodean and Asian companies, it is worth noting that more than 60% of the revenue and 90% of the EBIT of the group occurred from April onwards. A telling example of the power of the group to generate revenue and profits as we slowly emerge from the global pandemic situation.”
He hailed the group for remaining profitable while traversing the challenges of 2020 and still being able to issue a dividend, as was announced alongside the final results in April.
The more normal economic conditions of the past half-year has allowed the group companies to better showcase their potential to deliver, Laing said, but he stressed that the majority of them have “not yet come close to reaching their full potential”.
“This year has also had no shortage of challenges, but it finally feels like the companies have had a chance to put their vehicles in gear. We’re certainly not in the fast lane yet, but it’s great to be moving again.”
Chair Margaret Manning, who was appointed in July after the retirement of Lana Coronado, said that as she became more familiar with the many companies that make up MBH, “it became clear that their vision and resilience is what has been supporting them through these changing times”, operating as individual organisations and joining together within the group to leverage best practices and exchange their knowledge with each other.
“The community that they have built together has given them a resilience that is hard to achieve alone.”