![](d13dbd6/dms3rep/multi/opt/Logo-MBH-1920w.jpg"){kind=logo}
Unaudited Half Year Financial Report 2021
"It is great to be able to show such a strong bounce back
from our companies across the board."
Callum Laing | CEO MBH Corporation Plc
CEO Statement
Callum Laing
Chief Executive Officer
“Out of first gear, but not in the fast lane yet”
After the challenges of 2020, it is great to be able to show such a strong bounce back from our companies across the board.
- Revenue £49m up 81%
- EBIT £3m up 271%
- Estimated EPS up 80%
Whilst it might appear ‘easy’ to look good in comparison to the 2020 financials, there was nothing easy about the effort, creativity and resolution of our Principals and their teams to deliver these results. The shock of the pandemic situation may have faded, but many of the associated challenges still remain. Lockdowns and restrictions still hamper our Antipodean and Asian companies whilst staffing and supply chain are the biggest challenges facing the teams above the equator. But small business owners are nothing if not creative at solving problems when it comes to delivering for their clients and we are now starting to see the results of their hard work.
Traditionally, we do not break down our results by quarter, but in this instance it is useful to reveal that more than 60% of the revenue and 90% of the EBIT occurred from April onwards. A telling example of the power of the Group to generate revenue and profits once the handbrake is taken off. This is also a good indication of what is to come.
Room for Improvement
As always, we measure our success at MBH by our 3 drivers of shareholder value:
1 - Accretive Acquisitions
2 - Organic Growth
3 - Group synergies
That fantastic and very welcome organic growth from April onwards ironically caused some issues in our acquisitions. Acquisitive companies within our Group and potential future companies, found themselves overwhelmed with demand for their core businesses and needed to focus on that, rather than M&A.
There were continued applications from companies wanting to join MBH, however we found ourselves agreeing to put several of those opportunities on hold whilst those companies onboarded new clients, team members etc. In our opinion, it was absolutely the right thing to do and will make those companies even stronger when they become part of MBH. However, this resulted in us being able to announce only 2 further acquisitions since April: InterCity Taxis and VistaCare.
Fortunately, we now have so many incredible case studies within the Group that we can increasingly share the benefits of the model with industry specific media, keen to understand how small businesses can level the playing field against much larger organisations without losing control. I would encourage you to
view our YouTube channel where Victoria Sylvester & Melissa Shea are perfectly showcasing the work of the many incredible individuals that support our Group business on a daily basis.
The Board
Since our most recent annual results we have also seen some minor changes in the MBH Board structure. Lana Coronado, our Chair, retired to spend some well earned time with her family, but remains one of our biggest supporters. Lisa Maynard-Atems joined the Board as an apprentice, assisting us in our communications and advising on creating a more inclusive environment for additional diverse led businesses to join the Group.
I would also like to take a moment to welcome Margaret Manning OBE - our new Board Chair. Margaret is an incredibly experienced business owner and brings a wealth of experience and knowledge to the Group. Margaret will become a familiar face to all of you and do please watch this short film clip which will give you an insight into her personality and why we are so pleased to
welcome her.
The Future
MBH today is unrecognisable from the business that publicly listed on the Frankfurt Open Market less than 3 years ago. Today we have 25 companies across 8 industries in 5 countries and with several hundred years of entrepreneurial wisdom holding the majority of the shares in issue.
The Group came through all the challenges of 2020 profitable and still able to issue a dividend. In the first half of 2021 the companies in the Group have been able to better showcase their potential to deliver but still 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.
The Principals and insiders continue to hold the majority of the shares of MBH. Many have committed their life’s work to be part of this community and are understandably fiercely loyal to what it is and what it is growing into. That commitment has shone through in the results they have delivered and will continue to deliver in the future. As you can see below in the ESOG section many of the Principals are also encouraging their team members to become owners of MBH too.
We will keep giving 100% to do what we do best; attracting great companies and supporting them in their growth. We very much appreciate having you alongside us as we carry on the positive momentum for the rest of this year.
If you are new to MBH then I would firstly encourage you to read
the philosophy behind MBH from our initial listing.
Policy on Share buybacks
I have talked previously in these letters about our belief in returning profits to shareholders through the use of dividends. Something I’m pleased to say we have done every year that we have been public, predominantly through the issue of additional stock to reward our fellow owners for their stakeholding.
Another viable allocation of resources, especially when shares are considered undervalued, is for MBH to buy back shares from the market and extinguish them. This has an immediate positive impact on earnings per share (EPS) and often drives up demand for the remaining shares. This has been a popular topic of conversation amongst external shareholders of late so I would be happy to clarify the Boards position on it here:
The Board is completely open to share buy backs as long as the following criteria are met:
- The long term future of the group may not be sacrificed for the short term benefit of shareholders.
- There is excess capital in the group which is not being used for growth
- The price of the shares is below the majority of our peers
- There is a compelling and defensible reason to reassign profits from dividends to buybacks.
- Debt may only be used where it does not conflict with the first criteria.
I have highlighted and bolded the first point, because it is at the core of everything we do at MBH.
Non-Executive Chair Statement
Welcome from Margaret Manning
Non-Executive Chair
This is my first half-yearly results update as Non-Executive Chair for the MBH Corporation and what an interesting start to the year it has been.
2021 has seen businesses looking to the future after the uncertainties caused by the global pandemic. Plans that for many organisations include new ways of working, new approaches to their operating model and changes to how employees deliver their work. At the core of these changes for MBH is the safety and welfare of employees, customers and other stakeholders – which is paramount for business success as we move forward.
As I became more familiar earlier this year 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. A vision for how they operate as individual organisations and also how they join together within the Group to leverage best practices and exchange their extensive knowledge with each other. The community that they have built together has given them a resilience that is hard to achieve alone.
We know that the second half of the year will also present opportunities along with challenges. As we move through these uncertain times the other MBH Board Directors and I remain highly focused on overall Group performance and shareholder return.
I would like to extend my personal thanks to the MBH Group Leadership and teams globally for their hard work and dedication and I look forward to working with them in achieving success for MBH.
Financial Summary & CFO Statement
Victor Tan
Chief Financial Officer
A Message from the CFO
In the first half of 2021, global economic conditions remained challenging and economic activity remained subdued due to the COVID-19 outbreak. The results we delivered for the first half is testament to the commitment and hard work from our employees in 2020 and remaining steadfast in the first six months of 2021. We have seen a recovery in most of our businesses and whilst we look forward to delivering pre-Covid period returns, we do remain cognizant of the future potential impacts of this virus.
Key financial headlines for 1H 2021 are as follows:
We have remained disciplined and managed to use surplus cash generated to pay down long term debt which included a repayment in loans and bonds by £1.9million and £0.8million respectively. Net cash (including overdrafts) as at 30 June 2021 is £6.3 million which is an increase of £0.5 million from 31 December 2020. Total debt as at 30 June 2021 is £37.4 million (£9.8m external debt and £27.6 million of MBH Bonds).
We are cautiously optimistic that our businesses have the momentum back to full recovery and hope that economies remain open and restrictions do not return in the second half of 2021.
"We are pleased to deliver this strong half-year report and
solid growth in both revenue and EBIT."
Callum Laing | CEO MBH Corporation Plc
Global Footprint 2021
MBH Organisational Structure
Timeline 2021
"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."
Callum Laing | CEO MBH Corporation Plc
Meet the Principals 2021
Click to learn about how the Principals reflect on joining MBH.
Industry Trends
Electric, Hybrid and Driverless Vehicles.
What does the future hold for the taxi industry?
Can people transport and last mile delivery services successfully be amalgamated?
E-learning & Soft Skill Development. A blessing or curse in this digital era?
Do you see any challenges with the new
work from home culture?
Green Building - a global trend reserved for the rich or soon to be adopted reality for the masses?
Construction Robotics and 3D Construction Printing - what does the future look like?
Environmental Social Governance
MBH Corporation’s ESG strategy
Reaching the half year point is a good opportunity to reflect and share some of the ESG advances that have taken place within MBH and our subsidiaries since January.
MBH’s ESG strategy focuses on
impactful action. As highlighted in our 2020 annual report, at Group level we have aligned ourselves with the United Nations Sustainable Development Group’s [UNDSG] Goals 8, 10 and 13 (Decent Work and Economic Growth, Reduced Inequalities and Climate Action) and work to stretch beyond compliance to ensure our activities positively impact people, planet and our business through high level commitments and targets as part of our 5 stage plan (Identify, Commit, Act, Measure, Share).
Likewise, our subsidiaries have adopted this same ethos and approach, each aligning their businesses to the UNSDG Goals where they can have the most impact.
The MBH ESG Committee
Our ESG Committee has continued to grow with members from companies across the Group coming together to drive initiatives and act as ambassadors, sharing practice, knowledge and ideas to implement in the businesses. This work will continue as more companies come into the Group and increasingly bring added value to our work.
“Bringing entrepreneurial minds together for people,
our planet and prosperity”
Examples of MBH’s ESG Achievements in 2021 to date:
![](d13dbd6/dms3rep/multi/opt/8-1920w.png")
![](d13dbd6/dms3rep/multi/opt/10-1920w.png")
![](d13dbd6/dms3rep/multi/opt/13-663234e2-1920w.png")
"We achieved 5-star Support the Goals status, demonstrating our public commitment to the UNSDG’s.
The 5th star is in recognition for the work we do in raising awareness with our supply chain and bringing them on our ESG journey."
Victoria Sylvester | Executive Director MBH Corporation Plc
Next Steps for MBH and ESG
The above are just some examples of all the great work that is taking place in the Group and there is so much more when a deep dive is made into each Group company.
MBH is a fast growing company, and our ESG work is continually being reviewed and progressed as new companies join the Group. Our aim is to share as much as possible with investors about our work with transparency and importantly the real tangible impact.
To reach this goal, we are currently working in partnership with Keele University in the UK through their intern project to gather more deep dive data into the businesses in the Group and generate a detailed group picture which we intend to share with investors next year as part of our impact reporting. This will also give us the opportunity to share more about the great commitments the companies have made, for example those who are intending to work towards B-corp status and many other projects.
ESG is a journey for all businesses, for MBH we have always committed to this journey from the outset and we commit to continually working to build and strengthen our impact as our business grows.
To find out more about our MBH strategy visit our website ESG section.
As part of MBH’s efforts to ensure good governance of the Group, we are rolling out a new Employee Shareholder Ownership Guidelines policy.
The Policy is available to read
here.
Institutional Shareholder Services (ISS) believe, as do we, that executives should own a significant number of shares so their interests are aligned with other shareholders. ISS minimum recommendation is that the CEO owns at least 3x their annual salary. Maximum credit, through their QualityScore ratings, go to CEO’s that own 6x their annual salary in stock.
As a Board we have designed our policy around 6x annual salary being the minimum requirement for
any executive director that serves on the board.
Additional credit is offered for the holding periods of those executives, but MBH already has a rule that no serving Board member may sell MBH stock whilst serving on the Board.
Both Executive Directors, Callum Laing and Victoria Sylvester, own comfortably more than 6x their annual salary in MBH stock and both have added to their holdings through on and off market purchases in the past year.
We estimate that Principals and insiders currently own more than 60% of all MBH issued shares.
BAFIN regulations state that Director Dealings of over €20,000 in a given year must be publicly announced but anything below that amount can remain private.
MBH policy states that no Director may sell MBH shares as long as they serve on the Board so all transactions by Board members are share buys only.
A reminder that Principals that are issued stock are locked up for 12 months and then fall under an Orderly Market Agreement (OMA) for the following 3 years. This means that should they wish to sell shares, they must first offer them to their peers and for sale off market through our brokers before placing them on market.
Employee Share Purchase Program
Earlier this year Robinsons Caravans rolled out an Employee Share Purchase programme. Following its early success, the following companies have also agreed to roll it out to their teams before the end of the year; Logistica, Drive Me Group, Cobul and du Boulay. It is expected that other companies in the group may follow suit in 2022.
The programme stipulates that an employee can elect to save up to £250 of their monthly salary to purchase MBH shares and that if they do, the company will match their purchase, bringing it up to £500 per month.
So far in the trial program launched with Robinsons Caravans, some £6000 per month of shares are being purchased on market for employees.
"Throughout the year, company directors and staff have shown their commitment to MBH by acquiring more stock.
A further benefit of working for du Boulay Contracts is that we are about to roll out a formal share purchasing scheme where the business contributes the same value as the staff members and shares are purchased monthly.
It’s a great way to contribute while supporting team members who want to benefit from the growth of the whole group."
Scott Linden | Managing Director du Boulay Contracts
Investor & SME Research
As part of a continuing research-led initiative, MBH has conducted five key pieces of research so far in 2021.
This includes surveying 172 professional investors across the UK, US and Germany, managing a collective USD $465 billion in assets under management to assess their outlook on the critical area of Environmental, Social and Governance (ESG).
In addition to this, MBH also surveyed 170 professional investors across the same markets in March 2021 to uncover their views on the vibrant Micro Cap and Small Cap sector.
MBH also carried out a data analysis of the 40 key stock market indices across Europe and the US at micro-cap, small cap, mid cap and large cap level to highlight the continuing strong performance of Micro and Small Cap stocks in comparison with large caps.
Furthermore, MBH commissioned the research company Pure Profile to survey 388 SME owners in Germany and the UK in March 2021 to understand the pressures they are facing.
To find out more about our MBH research results visit our website.
Published: 30 September 2021
Stay connected
If you would like to learn more about MBH and what we are up to, you can easily keep us on your radar by signing up to our monthly investor news bulletin.
Keep us on your radar
![](d13dbd6/dms3rep/multi/opt/MBH-logo-high-res-1920w.png"){kind=logo}