We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hml Holdings Plc | LSE:HMLH | London | Ordinary Share | GB00B16DFY89 | ORD 1.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 36.50 | 35.00 | 38.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMHMLH
RNS Number : 1031E
HML Holdings PLC
02 July 2019
HML Holdings plc
("HML", the "Company" or the "Group")
Preliminary Results for the Year Ended 31 March 2019
HML Holdings plc (AIM: HMLH), the property management services group, is pleased to announce its preliminary results for the year ended 31 March 2019.
Financial and Operational Highlights:
Hot Features
Premium
-- Revenues up 8% to GBP28.1m (2018: GBP26.0m)
-- EBITDA up 8% to GBP2.8m (2018: GBP2.6m)**
-- Adjusted operating profit up 9% to GBP2.4m (2018:
GBP2.2m)*
-- Cash generated from operations increased to GBP3.6m
(2018: GBP2.7m)
-- Adjusted basic earnings per share up 10% to 4.6p
(2018: 4.2p)***
-- Dividend per share proposed of 0.47p (2018: 0.42p)
*before interest, share based payment charges, amortisation and tax (see note 1)
**before interest, share based payment charges, depreciation, amortisation and tax
***before interest, share based payment charges, amortisation and tax (see note 4)
Commenting on the results, Robert Plumb, Chief Executive of HML said:
"It has been a good year for HML growing adjusted EBITDA by 8% while significantly improving our service coverage with the addition of four acquired offices in key locations for our growing client base. We are confident in our ability to maintain this momentum while we continue to build our network and our central support divisions."
For further information: www.hmlgroup.com
HML Holdings Plc: 020 8439 8529
Robert Plumb, Chief Executive Officer
James Howgego, Chief Financial Officer
Alec Guthrie, Chief Operating Officer
Tavistock Communications Group: 020 7920 3150
James Verstringhe, Jeremy Carey
finnCap: 020 7220 0500
Ed Frisby/Giles Rolls - corporate finance
Camille Gochez/Tim Harper - corporate
broking
Mia Gardner, corporate broking
REVIEW OF BUSINESS
We are pleased to report revenue growth of 8% to GBP28.11m (2018: GBP25.97m). Earnings before interest, share-based payments, amortisation and tax improved by 9% to GBP2.41m (2018: GBP2.21m).
We enjoyed revenue and earnings growth from virtually all the Group's business segments and revenue lines. The only exception to this positive trend was in the pre-contract enquiry fees segment where we incurred a 7% fall in revenues as a result of the lower number of property sales. Surveying fees remained steady with a reduction in freehold valuation and consultancy fees being offset by stronger buildings reinstatement valuations and to a lesser extent building surveying work. We experienced strong growth in concierge (site staff) management fees where we have consolidated and improved our service offering. Other areas such as health and safety and fire risk inspections, company secretarial fees and insurance brokerage grew strongly as the continued integration of acquisitions made in previous years contributed to greater cross referral sales opportunities. We recorded further growth in new business volumes with notable improvements in the counties south and east of London. We are particularly pleased with improvements to our new business pipeline resulting from increased contact and relationships with new build developers and the implementation of a more centralised approach to lead processing.
We remain confident in our strategy to deliver a local and personal service through our distributed network of offices while maintaining our adherence to the increasing standards of compliance required of our profession. Although frustrated somewhat by governmental attention to areas other than leasehold, we continue to anticipate legislative changes to our market. In addition to restrictions on freehold and ground rent, higher levels of compliance are expected through future regulation of managing agents. However, while client compliance awareness has significantly improved in the area of health and safety, particularly with regard to fire regulation requirements, a general lack of enforcement of all these regulations can lead to lower standards and consequently create a competitive advantage for those managing agents willing to exploit the lack of enforcement and oversight. Our examination of the reasons behind business lost to unregulated managing agents indicate that this is a significant contributory factor.
The Group continues to centralise areas of non-client facing process from our network of offices to our centralised back office, the majority of which is based in Croydon. This has inevitably incurred reorganisation costs but the benefits in productivity have begun to show. In addition to streamlining our processes, the systems development team in conjunction with user representatives have completed a major exercise to facilitate the uniform application of our property management software to operate on a single database. This is another area in which the group sees significant opportunities for operational efficiencies in the future.
Towards the end of the financial year, the Company completed a number of key acquisitions, which have expanded the Group's network. In November, Dauntons Soar Management Limited (DSML) joined our Central London operations. The business represents an excellent opportunity for HML to manage high end smaller London apartment blocks with a bespoke service methodology. The Group anticipates being able to harness the benefits of DSML's service provision while benefitting from the advantages of economies resulting from HML's back office services. In February, HML acquired Residential Block Management Services Limited (RBMS) in Blackheath. The south eastern quartile of greater London is a region in which HML has been previously under represented. RBMS whose strengths, like ours, have been in serving the Residents Management Company (RMC) market, provides us with greater presence in this area and an opportunity to consolidate our position. Similarly, we acquired Francis Butson based in St Neots, Cambridgeshire, shortly after the year end with a view to establishing ourselves in an area where it had previously been difficult to provide a local and personal service.
In April 2019, as part of our ongoing strategy of developing our lettings management service, we purchased a Birmingham-based lettings management company called Prima Property Services Limited. Our offices in the centre of the city not only facilitate the expansion of our block management services to this geographical region but enable the further development of this complementary property service with a business with whom we have already established a working relationship.
All acquisitions have been funded by the cash generated from operations, which rose to GBP3.6m (2018: GBP2.7m). We are pleased to have further reduced borrowings by GBP0.5m to a total of GBP1.2m, thus reducing our debt to equity ratio from 9.4% to 5.9%.
After the recent acquisitions, the Group now manages more than 82,000 property units in 3,000 estates and blocks of flats from 24 offices. Our strategy to focus on owner-occupied and controlled blocks of flats and housing estates sits comfortably with our view of the structural changes ahead for the leasehold market. Improvements to our intragroup products and service offering ensure that they continue to grow as a proportion of our revenues. We anticipate this proportion continuing to grow as we refine our service and add technological efficiency to our systems. While there remains an inevitable degree of uncertainty as to the pace of leasehold reform, the market for our services grows, as does the relevance of scale and efficiency in providing a competitive quality service.
We are in the second year of operating as a single operational management structure under one HML brand and are confident that the benefits of the changes we have made in this area are now beginning to manifest themselves across the business, both financially and in enabling a more engaged employee base. Our management team continues to invest in the development and retention of employees knowing what a significant role morale and the quality of training plays in the provision of our services. On behalf of the board, I would like to express our thanks to our employees whose hard work in these changing and challenging times have enabled the group to continue to grow successfully.
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2019
Notes 2019 2018
GBP'000 GBP'000
CONTINUING OPERATIONS
REVENUE 28,110 25,968
------------------------ ------------------
Direct operating expenses (24,332) (22,509)
Central operating overheads (1,365) (1,248)
Share based payment charge (37) (30)
Amortisation of intangibles (640) (660)
------------------------ ------------------
Total central operating overheads (2,042) (1,938)
------------------------ ------------------
Operating expenses (26,374) (24,447)
------------------------ ------------------
PROFIT FROM OPERATIONS 2 1,736 1,521
------------------------ ------------------
Finance costs (50) (57)
------------------------ ------------------
PROFIT BEFORE TAXATION 1,686 1,464
Income tax charge 3 (305) (302)
------------------------ ------------------
PROFIT AND COMPREHENSIVE INCOME
FOR THE YEAR ATTRIBUTABLE TO THE
OWNERS OF THE PARENT 1,381 1,162
------------------------ ------------------
EARNINGS PER SHARE
Basic 4 3.0p 2.6p
------------------------ ------------------
Diluted 4 3.0p 2.5p
------------------------ ------------------
ADJUSTED EARNINGS PER SHARE
Basic 4 4.6p 4.2p
------------------------ ------------------
Diluted 4 4.6p 4.1p
------------------------ ------------------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
For the year ended 31 March 2019
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE GROUP
Share Share Other Merger Retained Total
capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ------------- ------------ ------------ ------------- ------------
Balance at 31 March
2017 671 2,251 (70) (15) 10,058 12,895
---------------- ------------- ------------ ------------ ------------- ------------
Profit for the year - - - - 1,162 1,162
Other comprehensive - - - - - -
income
Transactions with owners
Share based payment
charge - - - - 30 30
Share capital issued 11 199 - - - 210
Shares purchased by
EBT - - (18) - - (18)
Dividend - - - - (168) (168)
--------------- --------------- ----------- ----------- ----------- ------------
Balance at 31 March
2018 682 2,450 (88) (15) 11,082 14,111
--------------- --------------- ----------- ----------- ----------- ------------
Profit for the year - - - - 1,381 1,381
Other comprehensive - - - - - -
income
Transactions with owners
Share based payment
charge - - - - 37 37
Share capital issued 5 48 - - - 53
Shares sold by EBT - - 1 - - 1
Dividend - - - - (192) (192)
--------------- --------------- ----------- ----------- ----------- ------------
Balance at 31 March
2019 687 2,498 (87) (15) 12,308 15,391
--------------- --------------- ----------- ----------- ----------- ------------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 2019
COMPANY NUMBER: 5728008
2019 2018
ASSETS Notes GBP'000 GBP'000
NON-CURRENT ASSETS
Goodwill 11,384 10,510
Other intangible assets 8,373 7,937
Property, plant and equipment 1,030 786
----------------------- ----------------------
20,787 19,233
----------------------- ----------------------
CURRENT ASSETS
Trade and other receivables 3,804 3,930
Cash at bank 235 269
----------------------- ----------------------
4,039 4,199
----------------------- ----------------------
TOTAL ASSETS 24,826 23,432
----------------------- ----------------------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 6,602 6,112
Borrowings 529 529
Current tax liabilities 357 349
----------------------- ----------------------
7,488 6,990
----------------------- ----------------------
NON-CURRENT LIABILITIES
Deferred tax liability 1,268 1,124
Borrowings 679 1,207
----------------------- ----------------------
1,947 2,331
----------------------- ----------------------
TOTAL LIABILITIES 9,435 9,321
----------------------- ----------------------
NET ASSETS 15,391 14,111
----------------------- ----------------------
EQUITY
Called up share capital 6 687 682
Share premium 2,498 2,450
Other reserve (87) (88)
Merger reserve (15) (15)
Retained earnings 12,308 11,082
----------------------- ----------------------
ATTRIBUTABLE TO THE EQUITY HOLDERS OF
THE PARENT 15,391 14,111
----------------------- ----------------------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2019
Notes 2019 2018
GBP'000 GBP'000
OPERATING ACTIVITIES
Cash generated from operations 3,606 2,674
Income taxes paid (297) (238)
Interest paid (50) (57)
---------------- ----------------
NET CASH FROM OPERATING ACTIVITIES 3,259 2,379
---------------- ----------------
INVESTING ACTIVITIES
Purchase of property, plant and equipment (629) (410)
Sales/acquisition of own shares 1 (18)
Purchase of software (245) (235)
Purchase of client relationships - (36)
Purchases of businesses (994) 77
Payments of deferred/contingent consideration (759) (337)
NET CASH USED IN INVESTING ACTIVITIES (2,626) (959)
---------------- ----------------
FINANCING ACTIVITIES
Repayment of loans (528) (414)
Net movement in overdraft - (648)
Share issue 53 79
Dividend payment (192) (168)
NET CASH USED IN FINANCING ACTIVITIES (667) (1,151)
---------------- ----------------
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS (34) 269
CASH AND CASH EQUIVALENTS AT BEGINNING 269 -
OF YEAR
---------------- ----------------
CASH AND CASH EQUIVALENTS AT OF YEAR 235 269
---------------- ----------------
HML HOLDINGS PLC
NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION
GENERAL INFORMATION
Whilst the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs) as adopted by the European Union, this announcement does not itself contain sufficient information to comply with IFRSs.
The financial information is presented in pounds sterling, prepared on a historical cost basis, except for the revaluation of contingent considerations and rounded to the nearest thousand. The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 31 March 2019 or 31 March 2018.
The financial information for the year ended 31 March 2018 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.
The statutory accounts for the year ended 31 March 2019 have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. This preliminary announcement does not constitute statutory accounts under section 435 of the Companies Act 2006.
HML Holdings plc and its subsidiaries specifically focus on residential property management. The Group operates in the UK. The Company is a public limited company incorporated and domiciled in the United Kingdom. The address of its registered office is 9-11 The Quadrant, Richmond, Surrey, TW9 1BP. The Company is listed on the AIM market of the London Stock Exchange.
The preliminary results were authorised for issue by the board of directors on 1 July 2019.
1. PROFIT RECONCILIATION
The reconciliation set out below provides additional information to enable the reader to reconcile to the numbers discussed in the Review of Business.
2019 2018
GBP'000 GBP'000
Revenue 28,110 25,968
Direct operating expenses (24,332) (22,509)
---------------------- ----------------------
Profit contribution from businesses 3,778 3,459
Central operating overheads (1,365) (1,248)
---------------------- ----------------------
Profit before interest, tax, amortisation
and share based payments 2,413 2,211
Finance costs (50) (57)
---------------------- ----------------------
Profit before share based payment
charges, amortisation and taxation 2,363 2,154
Amortisation of other intangible assets (640) (660)
Share based payment charge (37) (30)
---------------------- ----------------------
Profit before taxation 1,686 1,464
====================== ======================
Direct operating expenses and central operating overheads include depreciation and staff costs.
2. PROFIT FROM OPERATIONS 2019 2018
GBP'000 GBP'000
Profit from operations is stated after
charging:
Depreciation and amounts written off property,
plant and equipment:
- charge for the year on owned assets 385 372
Amortisation of intangible assets 640 660
Operating lease rentals:
- land and buildings 970 1,056
Set out below is an analysis of other operating expenses:
2019 2018
GBP'000 GBP'000
Employee salaries and staff related expenses 19,807 17,863
Management costs 377 347
Travel costs 287 268
Advertising costs 95 86
Premises costs 2,046 1,988
Office costs 745 791
Insurance brokerage 761 692
Professional fees 440 531
IT costs 730 756
Depreciation 385 372
Amortisation 640 660
Share based payment charges 37 30
Other expenses 24 63
--------------------- ---------------------------------
Total operating expenses 26,374 24,447
--------------------- ---------------------------------
Amounts payable to the auditor and its related entities in respect of both audit and non-audit services are set out below:
2019 2018
GBP'000 GBP'000
Fees payable for the statutory audit of
the Company's annual
accounts 23 19
Fees payable to auditor for other services:
Statutory audit of the Company's subsidiaries 49 41
------------------------ ---------------------
Total fees payable to the auditor 72 60
------------------------ ---------------------
3. INCOME TAX 2019 2018
GBP'000 GBP'000
UK Corporation tax:
Current tax on profits of the year 326 307
Over provision of tax in previous year (21) (5)
---------- ----------
Tax attributable to the company and its
subsidiaries 305 302
---------- ----------
Factors affecting tax charge for the
year
The tax assessed for the period is lower than (2018: higher than) the standard rate of corporation tax in the UK of 19% (2018: 19%). The differences are explained below:
2019 2018
GBP'000 GBP'000
Profit before tax 1,686 1,464
---------- ----------
Profit before tax multiplied by the standard
rate of corporation tax in the UK of
19% (2018: 19%). 320 278
Effects of:
Amortisation and non-deductible expenses
adjustment 6 29
Over provision in previous year (21) (5)
Tax charge for the year 305 302
========== ==========
Future tax charges may be affected by the fact that no deferred tax asset is recognised in respect of losses. Deferred tax assets are not recognised until the utilisation of the losses is probable.
The Group has losses carried forward in its subsidiary, HML PM Limited which can be recovered against future profits arising from the same trade. The total tax losses carried forward to future years are GBP1,243,000 (2018: GBP1,243,000). Consequently, the unprovided deferred tax asset in respect of these losses is GBP211,000 (2018: GBP211,00).
4. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is based on the following data
2019 2018
GBP'000 GBP'000
Earnings
Profit after tax for the period 1,381 1,162
(used to calculate the basic and diluted
earnings per share)
Add back:
Share based payment charge 37 30
Amortisation of intangible assets 640 660
Interest costs 50 57
Adjusted profit after the tax for the
period 2,108 1,909
---------- ----------
The adjusted profit after tax has been used to calculate
the basic and diluted adjusted earnings per share.
Number of shares 2019 2018
'000 '000
Weighted average number of ordinary shares
for the purposes of basic earnings per
share 45,630 45,269
Effect of dilutive potential ordinary
shares:
- share options 494 857
---------- ----------
Weighted average number of ordinary shares
for the purposes of diluted earnings
per share 46,124 46,126
---------- ----------
Earnings per share
Basic 3.0p 2.6p
Diluted 3.0p 2.5p
Adjusted earnings per share
Basic 4.6p 4.2p
Diluted 4.6p 4.1p
The diluted earnings per share are the basic earnings per share adjusted for the dilutive effect of the conversion into fully paid shares of the outstanding share options.
5. BUSINESS COMBINATIONS (ACQUISITIONS)
On 1 December 2018, HML PM Limited purchased 100% of the share capital of Dauntons Soar Management Limited, a business based in Victoria, London. The acquisition will not only strengthen the Group's position in Central London but also gives the Group critical mass that will assist in growing the Group's ancillary revenues.
The estimated fair value of net assets transferred is set out below:
GBP'000
Consideration 918
Stamp duty 2
---------
Total cost of investment 920
Less:
Trade and other receivables (158)
Cash at bank (210)
Tangible fixed assets (5)
Trade and other payables 99
Client relationships (336)
---------
Goodwill 310
---------
The residual difference between the total consideration paid and the net value of the recognised assets acquired has been capitalised as goodwill. The goodwill recognised on the acquisition is mainly attributable to the skills and knowledge within the business.
GBP'000
Satisfied by:
Cash on completion 467
Deferred and contingent consideration 451
-----------------
918
-----------------
Net cash flow arising on the acquisition was GBP259,000 which represents the consideration and stamp duty paid less cash at bank acquired.
The contingent consideration of GBP451,000 is due within two years. The contingent consideration is made up of two components, firstly the payment relating to the excess working capital in the business on acquisition and secondly another payment that is adjustable depending on the retention of clients and the arrival of contracted new clients. The payment for working excess capital will be GBP249,000. The range of potential payments of contingent consideration could vary from GBP0 to GBP202,000, however the more likely outcome would be to pay GBP202,000. Contingent consideration has not been discounted as the discounting is immaterial to the Group.
The business contributed GBP196,000 to the Group's revenue and increased the Group's profit by GBP1,000 from the date of the acquisition to the year-end date.
On 18 February 2019, HML PM Limited purchased 100% of the share capital of Residential Block Management Services Limited, a property management business based in Blackheath, London. The acquisition will strengthen the Group's position in South East London.
The estimated fair value of net assets transferred is set out below:
GBP'000
Consideration 794
Less:
Tangible fixed assets (4)
Trade and other receivables (94)
Cash at bank (2)
Trade and other payables 146
Client relationships (420)
Goodwill 420
---------
The residual difference between the total consideration paid and the net value of the recognised assets acquired has been capitalised as goodwill. The goodwill recognised on the acquisition is mainly attributable to the skills and knowledge within the business.
GBP'000
Satisfied by:
Cash on completion 675
Deferred and contingent consideration 119
---------
794
---------
Net cash flow arising on the acquisition was GBP673,000 which represents the consideration and transaction costs, less cash at bank.
The contingent consideration of GBP119,000 is due within one year. The contingent consideration is made up of two components, firstly the payment relating to the excess working capital in the business on acquisition and secondly another payment that is adjustable depending on the reduction of clients. The range of potential payments of contingent consideration could vary from GBP0 to GBP119,000, however the more likely outcome would be to pay GBP119,000. Contingent consideration has not been discounted as the discount would be immaterial to the Group.
The business contributed GBP168,000 to the Group's revenue and increased the Group's profit
by GBP80,000, from the date of the acquisition to the year-end date.
On 28 February 2019, HML PM Limited purchased a small portfolio of block management instructions from Grillo LLP Chartered Surveyors, a business in Surrey. An initial payment of GBP51,000 was made with contingent consideration of GBP11,000 due within one year.
If all business combinations arising in the year had occurred on 1 April 2018, the consolidated revenue and profit for the Group for the year ended 31 March 2019 would have increased to GBP1,269,000 and GBP157,000 respectively
6. SHARE CAPITAL
Group and Company
2019 2018
Authorised: GBP'000 GBP'000
163,733,200 ordinary shares of 1.5p each 2,456 2,456
----------------- --------------
2,456 2,456
----------------- --------------
Group and Company
2019 2018
Allotted, issued and fully paid ordinary GBP'000 GBP'000
shares of 1.5p:
1 April 682 671
Issued during the year - 341,500 (2018:730,539)
shares 5 11
----------------- --------------
31 March 687 682
----------------- --------------
No. of shares in issue at year end 45,830,135 45,488,635
================= ==============
Shares issued during the year ended 31 March 2019 relate to the exercising of share options by HML staff in August 2018 and February 2019.
7. DIVIDENDS
The Directors have proposed paying a dividend of 0.47p per share in relation to the current year (2018: 0.42p per share).
If approved the final dividend will be paid on 18 October to shareholder on the register at 4 October 2019. The corresponding ex-dividend date is 3 October 2019.
8. ADOPTION OF IFRS 9 AND IFRS 15
IFRS 9 "Financial instruments" and IFRS 15 "Revenue from contracts with customers" were both adopted with effect from 1 April 2018 in line with the transitional provisions provided in the new standards. The standards have been adopted using the modified retrospective approach where the prior period amounts have not been restated but any difference between amounts recognised under IFRS 9 and IFRS 15 and those previously recognised under IAS 39, IAS 11 and IAS 18 has been recognized in the opening retained earnings at 1 April 2018.
The adoption of IFRS 15 and IFRS 9 has resulted in no material adjustments to the financial statements.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
FR EASXFESLNEFF
(END) Dow Jones Newswires
July 02, 2019 02:00 ET (06:00 GMT)
1 Year Hml Chart |
1 Month Hml Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
