MBH Corporation PLC (OTCQX:MBHCF, ETR:M8H) says it remains focused on potential acquisitions and has the capacity to acquire between 15 and 20 small and medium sized companies a year.
The diversified holding company, which acquired 17 companies during 2021 and 2020 during the COVID-19 crisis, said it believes more opportunities for further acquisitions are opening up.
MBH said it is looking to expand beyond its current eight industry sectors, which include training and education, leisure, transport, health, construction, engineering, construction and food and beverages, with a “well established” pipeline of further acquisitions.
Callum Laing, chief executive of MBH, said: “What we are focused on are good well-run companies, not specific industries or sectors as such. It is important that we get good companies in. We buy companies that can stand alone.
“We have capacity for more acquisitions and a strong pipeline. What we are saying is come and have a chat with us and let’s see if there is an opportunity to grow by collaborating.”
In the first half of 2021 the group completed four acquisitions and has since taken its total up to 27 companies across five countries.
Ownership by a PLC helps business owners to retain senior staff by offering them stock options in the group and allows owners to access liquidity in their companies, the company said, while being part of a PLC also helps businesses to bid for government procurement contracts as the parent organisation guarantee supports them in bidding.
MBH remained profitable through 2020, while recent first-half results for this year showed how the group has emerged stronger from the pandemic, with earnings up over 270% and revenues up 81%, with almost two thirds of that occurring from April onwards.
Roughly 70% of shares of MBH are owned by the principals of the 27 group companies, with at least 40% of the principals also engaged in on-market purchases of shares.
The companies in the MBH group carry minimal debt and are mostly still run by their founders, who have a target to deliver £0.5mln to £5mln in EBIT each year.