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| 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 : 6011U
HML Holdings PLC
26 November 2019
HML HOLDINGS Plc
("HML" or the "Group")
HALF YEAR RESULTS
HML Holdings Plc (AIM: HMLH), the property management services group, today announces its interim results for the six months to 30 September 2019.
Highlights for the six-month period:
-- Revenue up 14% to GBP15.5m (2018: GBP13.6m) -- Adjusted operating profit has reduced by 5% to GBP1.07m (2018: GBP1.12m)* -- Cash generated from operations was GBP1.39m (2018: GBP1.56m) -- Adjusted earnings per share fell to 2.1p (2018: 2.2p)** -- Units under management increased to 82,000 (2018: 76,000)
*before interest, share based payment charges, amortisation and tax (see note 4)
**before interest, share based payment charges, amortisation and tax (see note 5)
Commenting on the results, Robert Plumb, Chief Executive Officer of HML Holdings Plc said:
"We are pleased to report continuous growth for the group in challenging market conditions. Our ability to buy and successfully integrate acquisitions is improving, and while we are yet to see the full benefits flow through, we are confident that our strategy will deliver significant value to shareholders in the long-term."
For further information:
www.hmlgroup.com
HML Holdings Plc Tel: 020 8439 8529
Robert Plumb, Chief Executive Officer
James Howgego, Chief Financial Officer
Alec Guthrie, Chief Operating Officer
Tavistock Communications Limited Tel: 020 7920 3150
Jeremy Carey
James Verstringhe
FinnCap Tel: 020 7220 0500
Ed Frisby/Giles Rolls - Corporate Finance
Camille Gochez/Tim Harper - ECM
REVIEW OF BUSINESS
We are pleased to report ongoing growth with revenues rising by 14% to GBP15.5m (2018: GBP13.6m). Acquisitions since 30 September 2018 contributed GBP0.9m or 7% of that revenue growth.
Reductions in a number of revenue lines that are more susceptible in this slower economic environment have however contributed to a GBP0.05m fall in earnings before interest, share based payments, amortisation and tax which are GBP1.07m for the six-month period (2018: GBP1.12m). While we have seen strong growth in some of our more resilient revenue lines, such as insurance which is up 15% on last year, others including pre-contract enquiries and surveying have not increased in line with the growth in our business generally.
HML has also experienced, as others in high employee cost sectors such as property services, a proportionately high increase in salary costs. This is contrary to the downward pressure typically associated with economic turndowns. We have found that salary expectations in sectors with a comparatively high level of employment, like our own, have increased relative to the inflationary levels achievable in the fees for our services.
HML has however made significant progress both in further developing our back-office functions and our acquisitions integration methodology. While the value from these improvements is yet to truly flow to the bottom line our confidence in them has grown considerably. Our processes for transferring portfolios on to our systems have improved and shortened the time in which acquisitions remain on legacy systems. This brings forward the time when we are able to offer our ancillary services to our new clients.
The much-anticipated implementation of changes to the regulatory environment governing property management and leasehold continue to be delayed. While this is understandable in our current political environment, it remains a frustration for those managing agents, like HML, which operate in the Residential Management Company market, who are striving for a greater professionalisation and standardisation of service standards. The polarisation of compliant and non-compliant agents in this competitive, but unregulated market, appears to have grown. The costs of conforming for those who adhere to professional standards are felt both in having to build the infrastructure to deliver a compliant service and in being at a competitive disadvantage when dealing with those who are prepared, for the sake of lower costs, to ignore their obligations as owners of communal properties.
There are several factors currently contributing to the growth of non-qualified players in the specialised area of block management. For example, the fall in property sales across the market has encouraged estate agents to enter, or re-enter, the property management market. This is something that has occurred in previous economic downturns and tends to reverse when transactional income is restored. We also anticipate that greater regulation of the property management sector in the future will prevent this happening.
The ongoing restlessness in our fragmented market continues to create opportunities for those experienced in and capable of making acquisitions in the sector. The benefits of economy of scale and the revenue growth opportunities inherent in HML's full-service infrastructure continue to become more evident as we selectively acquire attractive businesses. Equally, despite the current circumstances in our market, we remain confident in the resilience and future benefits of our strategy and business model and look forward to delivering continued shareholder value as we build the Group.
Robert Plumb
Chief Executive Officer
25 November 2019
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 September 2019
Hot Features
Premium
Unaudited
6 months Unaudited Audited
to 6 months to Year ended
30 September 30 September 31 March
2019 2018 2019
Continuing operations Notes GBP'000 GBP'000 GBP'000
------------------------------------- --------- --------------- --------------- -------------
Revenue 15,492 13,557 28,110
------------------------------------- --------- --------------- --------------- -------------
Direct operating expenses (13,743) (11,788) (24,332)
------------------------------------- --------- --------------- --------------- -------------
Central operating overheads (681) (649) (1,365)
Share based payment charge (25) (18) (37)
Amortisation of intangible
assets (355) (320) (640)
------------------------------------- --------- --------------- --------------- -------------
Total central operating overheads (1,061) (987) (2,042)
------------------------------------- --------- --------------- --------------- -------------
Operating expenses (14,804) (12,775) (26,374)
------------------------------------- --------- --------------- --------------- -------------
Profit from operations 688 782 1,736
Finance costs (54) (26) (50)
Profit before taxation 4 634 756 1,686
Income tax charge (120) (140) (305)
------------------------------------- --------- --------------- --------------- -------------
Profit for the period attributable
to equity holders of the parent 514 616 1,381
Other comprehensive income - - -
------------------------------------- --------- --------------- --------------- -------------
Total comprehensive income
for the period attributable
to equity holders of the parent 514 616 1,381
------------------------------------- --------- --------------- --------------- -------------
Earnings per share
Basic 5 1.1p 1.4p 3.0p
Diluted 5 1.1p 1.3p 3.0p
------------------------------------- --------- --------------- --------------- -------------
Adjusted earnings per share
Basic 5 2.1p 2.2p 4.6p
Diluted 5 2.0p 2.1p 4.6p
------------------------------------- --------- --------------- --------------- -------------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
COMPANY NUMBER: 5728008
30 September 2019
Unaudited Unaudited Audited
30 September 30 September 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
-------------------------------- --------------- --------------- -----------
ASSETS
Non-Current Assets
Goodwill 12,330 10,510 11,384
Other intangible assets 8,279 7,748 8,373
Property, plant and equipment 6,437 1,060 1,030
27,046 19,318 20,787
-------------------------------- --------------- --------------- -----------
Current Assets
Trade and other receivables 3,010 3,225 3,804
Cash at bank - 516 235
3,010 3,741 4,039
-------------------------------- --------------- --------------- -----------
TOTAL ASSETS 30,056 23,059 24,826
--------------------------------- --------------- --------------- -----------
LIABILITIES
Current Liabilities
Trade and other payables 5,498 5,198 6,602
Bank overdraft and borrowings 1,092 529 529
Lease liabilities 1,239 - -
Current tax liabilities 381 341 357
--------------------------------- --------------- --------------- -----------
8,210 6,068 7,488
-------------------------------- --------------- --------------- -----------
Non-Current Liabilities
Bank borrowing 414 943 1,268
Deferred tax 1,267 1,124 679
Lease liabilities 4,108 - -
Non-current tax liabilities 120 140 -
--------------------------------- --------------- --------------- -----------
5,909 2,207 1,947
-------------------------------- --------------- --------------- -----------
TOTAL LIABILITIES 14,119 8,275 9,435
--------------------------------- --------------- --------------- -----------
NET ASSETS 15,937 14,784 15,391
--------------------------------- --------------- --------------- -----------
EQUITY
Share capital 688 686 687
Share premium 2,504 2,485 2,498
Other reserves (87) (88) (87)
Merger reserve (15) (15) (15)
Retained earnings 12,847 11,716 12,308
--------------------------------- --------------- --------------- -----------
TOTAL EQUITY 15,937 14,784 15,391
--------------------------------- --------------- --------------- -----------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months ended 30 September 2019
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 1 April
2018 682 2,450 (88) (15) 11,082 14,111
--------------------- ----- ------- ------ ------ -------- --------
Total comprehensive
income for the period - - - - 616 616
Share based payment
charge - - - - 18 18
Share capital issued 4 35 - - - 39
Balance at 30 September
2018 686 2,485 (88) (15) 11,716 14,784
-------------------------- ----- ------- ------ ------ -------- --------
Total comprehensive
income for the period - - - - 765 765
Share based payment
charge - - - - 19 19
Share capital issued 1 13 - - - 14
Share sold by EBT - - 1 - - 1
Dividend - - - - (192) (192)
Balance at 31 March
2019 687 2,498 (87) (15) 12,308 15,391
---------------------- ----- ------- ------ ------ -------- --------
Total comprehensive
income for the period - - - - 514 514
Share based payment
charge - - - - 25 25
Share capital issued 1 6 - - - 7
Balance at 30 September
2019 688 2,504 (87) (15) 12,847 15,937
-------------------------- ----- ------- ------ ------ -------- --------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended 30 September 2019
Unaudited Unaudited Audited
6 months 6 months Year ended
to to 31 March
Notes 30 September 30 September 2019
2019 2018 GBP'000
GBP'000 GBP'000
---------------------------------------------------- --------- --------------- --------------- -------------
Operating activities
Cash generated from operations 6 1,389 1,562 3,606
Income taxes refunded/(paid) 23 (8) (297)
Interest paid (19) (26) (50)
Net cash from operating activities 1,393 1,528 3,259
---------------------------------------------------- --------- --------------- --------------- -------------
Investing activities
Purchase of property, plant and equipment (235) (454) (629)
Acquisition of own shares - - 1
Purchase of software (128) (120) 245
Acquisition of businesses (1,050) (6) (994)
Payment of deferred/contingent consideration (520) (476) (759)
Net cash used in investing activities (1,933) (1,056) (2,626)
---------------------------------------------------- --------- --------------- --------------- -------------
Financing activities
Repayment of loans (265) (264) (528)
Net movement in overdraft 563 - -
Shares issued 7 39 53
Dividend payment - - (192)
Net cash from/(used in) financing activities 305 (225) (667)
---------------------------------------------------- --------- --------------- --------------- -------------
Increase in cash and cash equivalents (235) 247 (34)
Cash and cash equivalents at beginning of period 235 269 269
---------------------------------------------------- --------- --------------- --------------- -------------
Cash and cash equivalents at end of period - 516 235
==================================================== ========= =============== =============== =============
HML HOLDINGS PLC
NOTES TO THE ACCOUNTS
Six months ended 30 September 2019
1. General Information
The interim unaudited financial information was approved by the board on 25 November 2019.
The results for the year ended 31 March 2019 have been audited whilst the results for the six months ended 30 September 2018 and 30 September 2019 are unaudited. The financial information contained in this interim report does not constitute statutory accounts for the year ended 31 March 2019. The statutory accounts for that year, which were prepared under International Financial Reporting Standards ('IFRS'), have been delivered to the Registrar of Companies. The auditor's opinion on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.
Copies of the interim report are available from www.hmlgroup.com or from the Company Secretary at HML Holdings plc, 9-11 The Quadrant, Richmond, Surrey, TW9 1BP.
2. International Financial Reporting Standards
The consolidated financial information has been prepared using accounting policies consistent with IFRS as adopted by the European Union.
The accounting policies applied are consistent with those expected to apply for the year ended 31 March 2020. IFRS 16 Leases been applied for the first time in preparing the interim financial information. Note 7 sets out the key impacts on the Statement of Comprehensive Income and the Statement of Financial Position of the adoption of the new standard.
Whilst the financial figures included in this interim report have been computed in accordance with IFRS, this interim report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.
3. Taxation
Taxation for the six months to 30 September 2019 is based on the effective rate of taxation of 19% which is estimated to apply for the year ending 31 March 2020.
4. Profit before interest, share Unaudited Unaudited Audited
based payments charges, amortisation 6 months 6 months to Year ended
and taxation to 30 September 31 March
30 September 2018 2019
2019 GBP'000 GBP'000
GBP'000
---------------------------------------- --------------- --------------- -------------
Operating profit before interest,
share based payment charges,
amortisation and taxation 1,068 1,120 2,413
Finance costs (54) (26) (50)
---------------------------------------------- --------------- --------------- -------------
Operating profit before share
based payment charges, amortisation
and taxation 1,014 1,094 2,363
Share based payment charge (25) (18) (37)
Amortisation of intangible
assets (355) (320) (640)
Profit before taxation 634 756 1,686
---------------------------------------------- --------------- --------------- -------------
5. Earnings per share Unaudited Unaudited Audited
6 months 6 months to Year ended
to 30 September 31 March
30 September 2018 2019
2019
----------------------------------- --------------- --------------- -------------
Profit after tax for the period
(GBP'000s)
(used to calculate the basic
and diluted earnings per share)
Add back: 514 616 1,381
Share based payment charge 25 18 37
Amortisation of intangible
assets 355 320 640
Finance costs 54 26 50
----------------------------------------- --------------- --------------- -------------
Adjusted profit after tax for
the period (GBP'000s) (used
to calculate the basic and
diluted adjusted earnings per
share) 948 980 2,108
----------------------------------------- --------------- --------------- -------------
Weighted average number of
shares (000s)
For basic earnings per share 45,840 45,526 45,630
Effect of dilutive potential
ordinary shares:
- share options 474 696 494
Fully diluted 46,314 46,222 46,124
Earnings per share
Basic 1.1p 1.4p 3.0p
Diluted
Adjusted earnings per share 1.1p 1.3p 3.0p
Basic 2.1p 2.2p 4.6p
Diluted 2.0p 2.1p 4.6p
----------------------------------------- --------------- --------------- -------------
6. Notes to the cash flow statement Unaudited Unaudited Audited
Cash generated from operations 6 months 6 months to Year ended
to 30 September 31 March
30 September 2018 2019
2019 GBP'000 GBP'000
GBP'000
----------------------------------- --------------- --------------- -------------
Profit from operations *688 **782 1,736
Adjustments for:
Share-based payment charge 25 18 37
Depreciation of plant and
equipment 210 180 385
Amortisation of intangible
assets 355 320 640
Operating cash flows before
movements in working capital 1,278 1,300 2,798
Decrease in trade and other
receivables 794 705 126
(Decrease)/increase in trade
and other payables (683) (443) 682
Cash generated from operations 1,389 1,562 3,606
----------------------------------------- --------------- --------------- -------------
*Profit from operations is stated after charging depreciation of right of use assets totalling GBP580,000
**Profit from operations is stated after charging rent of GBP522,000
7. Adoption of accounting standard IFRS 16
The Group has adopted IFRS 16 using the modified retrospective approach with the effect of applying this standard at the date of initial recognition of 1 April 2019, consequently comparatives have not been restated.
As a lessee, the Group has previously classified leases as operating or finance leases based on whether the lease transferred significantly all of the risks and rewards incidental to the ownership of the underlying asset. Under IFRS 16, the Group recognises right-of-use assets and lease liabilities for all leases on its balance sheet.
The key impacts on the Statement of Comprehensive Income and the Statement of Financial Position are as follows:
Right of Lease Income statement
use asset obligation GBP'000
GBP'000 GBP'000
--------------------------------- ------------ ---------------------- ------------------
Balance on transition - - -
Additions 5,962 (5,962) -
Depreciation (580) - (580)
Interest - (35) (35)
Lease payments - 614 614
Carrying value at 30 September
2019 5,382 (5,382) -
--------------------------------- ------------ ---------------------- ------------------
The above IFRS 16 adjustment relates to the leases on the 24 offices rented by the Group.
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
IR CKPDNOBDDDDB
(END) Dow Jones Newswires
November 26, 2019 02:00 ET (07:00 GMT)
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