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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 : 9849J
HML Holdings PLC
04 July 2017
HML Holdings Plc
("HML", the "Company" or the "Group")
Final Results for the Year Ended 31 March 2017
HML Holdings plc (AIM: HMLH), the property management services group, is pleased to announce its final results for the year ended 31 March 2017.
Financial and Operational Highlights:
Hot Features
Premium
* Revenues up 13% to GBP20.91m (2016: GBP18.56m)
* EBITDA up 13% to GBP2.14m (2016: GBP1.89m)**
* Operating profit up 12% to GBP1.84m (2016: GBP1.63m)*
* Profit before tax up 7% to GBP1.30m (2016: GBP1.21m)
* Adjusted earnings per share 3.9p (2016: 3.8p)
* Dividend per share proposed of 0.37p (2016: 0.33p)
*before interest, share based payment charges, amortisation and tax (see note 1)
**before interest, share based payment charges, depreciation, amortisation and tax
Commenting on the results, Robert Plumb, Chief Executive of HML said: "We are very pleased to report another excellent year of growth at HML. We have made several acquisitions this year and our investment in the management teams and processes necessary to facilitate the integration of these business is really starting to pay off. We remain confident in our ability to manage and balance the growth in our business with the need to improve the infrastructure necessary to support it.
"In a market that is becoming increasingly polarised between those offering services that are compliant with the ethical code and practices of our professional bodies and those that aren't, HML is emerging as one of the largest managing agents in the independent owner-occupied sector and remains well-positioned to benefit from the growing need for independence and professionalism."
For further information:
HML Holdings Plc: 020 8439 8529
Robert Plumb, Chief Executive
Officer
James Howgego, Chief Financial
Officer
Tavistock Communications Group: 020 7920 3150
James Verstringhe, Jeremy Carey
finnCap: 020 7220 0500
Jonny Franklin-Adams/ Giles
Rolls - corporate finance
Mia Gardner - corporate broking
Mia Gardner, corporate broking
REVIEW OF BUSINESS
The Board are pleased to report a 13% (2016: 8%) growth in revenues as well as an 18% (2016: 18%) increase in property units under management to 71,000.
Earnings before interest, share based payments, amortisation and tax rose 12% (2016: 6%) to GBP1,836,000 (2016: GBP1,634,000). The Group has further expanded the number of office locations to 21 (2016: 15).
This has been a year in which management has focused a significant amount of effort on the integration of acquisitions. In total the Group purchased six block management businesses, three of which were in the first quarter of the year. While all three of these earlier acquisitions have been successful in terms of our primary intragroup services, the value of their incremental earnings potential is only becoming fully realisable as they are integrated onto HML's systems and standardised procedures. The other three acquisitions, substantially larger, were purchased toward the end of the fourth quarter and have not had a material impact on our reported revenues and earnings.
It is pleasing to report higher revenues across all segments of the business with surveying (14% growth) and insurance (8% growth) improving in line with acquisition growth from prior years. Property management continues to enjoy organic and acquisition growth, although it is important to note that this segment would have achieved a further GBP200,000 in earnings contribution had transactional fees from the sale of properties under management continued at levels of the previous year.
It has been a year in which we have taken several steps forward. We have introduced a new logo and brand for the Group following extensive research and reflection on our values and image. We are progressing towards a single name for our property management offices while accentuating our tailored, personal and local service attributes through the strength in our network of offices. We have also taken significant strides in the centralisation of the management of our human resources not only by upgrading the systems that support them but through a number of initiatives in areas such as recruitment, learning and development, engagement and appraisal. Having grown the staff numbers to over 500 this year, it was pleasing to see some of the early benefits from the investment in these initiatives which are reflected in lower staff turnover and recruitment fees.
We have reported on a number of occasions the emerging differences arising within a market that is more clearly dividing between those offering services that are compliant with the ethical code and practices of our professional bodies and those who seek to compete purely on price with little attention to the peculiarities and complexity of leasehold management. That polarisation has continued with a slowly growing awareness of the susceptibility to the abuse of lessees inherent in the leasehold market. The public light that shone on the recent growth in houses that are unnecessarily sold as leasehold has undoubtedly heightened awareness in this sector. We believe that publicity of practices such as these will support the case for independent and professional managing agents.
We were pleased to welcome new shareholders to our ownership in our December fund raising which facilitated the acquisition of three businesses in the 4(th) quarter. We are confident that these acquisitions will improve shareholder value.
Our thanks also go to our employees for the hard work that has helped us to accomplish meaningful growth during what has been a challenging year.
HML is emerging as one of the larger managing agents in the independent owner occupied market and remains well positioned to benefit from the growing need for independence and professionalism. We remain determined to build the infrastructure and expertise within our management teams that enables us to accommodate that growth. As such our Board enters the upcoming year with confidence and looks forward to updating shareholders as the year progresses.
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
For the year ended 31 March 2017
Notes 2017 2016
GBP'000 GBP'000
Total Total
CONTINUING OPERATIONS
REVENUE 20,910 18,564
---------- ----------
Direct operating expenses (17,796) (15,643)
Central operating overheads (1,278) (1,287)
Share based payment charge (27) (22)
Amortisation of intangibles (467) (390)
Total central operating overheads (1,772) (1,699)
Operating expenses 2 (19,568) (17,342)
PROFIT FROM OPERATIONS 1,342 1,222
---------- ----------
Finance costs (39) (10)
---------- ----------
PROFIT BEFORE TAXATION 1,303 1,212
Income tax charge 3 (261) (200)
---------- ----------
PROFIT AND COMPREHENSIVE INCOME
FOR THE YEAR ATTRIBUTABLE TO
THE OWNERS OF THE PARENT 1,042 1,012
========== ==========
EARNINGS PER SHARE
Basic 4 2.6p 2.7p
---------- ----------
Diluted 4 2.5p 2.6p
---------- ----------
ADJUSTED EARNINGS PER SHARE
Basic 4 3.9p 3.8p
---------- ----------
Diluted 4 3.8p 3.6p
---------- ----------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
For the year ended 31 March 2017
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE GROUP
Share Share Other Merger Retained Total
capital premium reserve reserve earnings equity
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Balance at 31
March 2015 561 129 (85) (15) 8,198 8,788
---------- ---------- ---------- ---------- ---------- ----------
Profit for the
year - - - - 1,012 1,012
Other comprehensive - - - - - -
income
Share based payment
charge - - - - 22 22
Share capital
issued 22 215 - - - 237
Costs incurred
by EBT - - (1) - - (1)
Dividend - - - - (114) (114)
Balance at 31
March 2016 583 344 (86) (15) 9,118 9,944
----- ------- ------ ------ --------- ---------
Profit for the
year - - - - 1,042 1,042
Other comprehensive - - - - - -
income
Share based payment
charge - - - - 27 27
Share capital
issued 88 1,907 - - - 1,995
Shares sold by
EBT - - 16 - - 16
Dividend - - - - (129) (129)
Balance at 31
March 2017 671 2,251 (70) (15) 10,058 12,895
----- ------- ------ ------ --------- ---------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
For the year ended 31 March 2017
2017 2016
ASSETS Notes GBP'000 GBP'000
NON CURRENT ASSETS
Goodwill 8,894 6,953
Other intangible assets 6,604 5,220
Property, plant and equipment 701 701
---------- ----------
16,199 12,874
---------- ----------
CURRENT ASSETS
Trade and other receivables 5,619 2,505
Cash at bank - -
5,619 2,505
---------- ----------
TOTAL ASSETS 21,818 15,379
---------- ----------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 5,076 3,517
Borrowings 1,119 597
Current tax liabilities 296 264
---------- ----------
6,491 4,378
---------- ----------
NON CURRENT LIABILITIES
Deferred tax liability 753 632
Borrowings 1,679 425
2,432 1,057
---------- ----------
TOTAL LIABILITIES 8,923 5,435
---------- ----------
NET ASSETS 12,895 9,944
========== ==========
EQUITY
Called up share capital 6 671 583
Share premium account 2,251 344
Other reserve (70) (86)
Merger reserve (15) (15)
Retained earnings 10,058 9,118
ATTRIBUTABLE TO THE EQUITY HOLDERS
OF THE PARENT 12,895 9,944
========== ==========
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CASH
FLOWS
For the year ended 31 March
2017
2017 2016
GBP'000 GBP'000
OPERATING ACTIVITIES
Cash generated from operations 1,878 1,606
Income taxes paid (229) (173)
Interest paid (39) (10)
--------------------- -----------------------
NET CASH FROM OPERATING ACTIVITIES 1,610 1,423
--------------------- -----------------------
INVESTING ACTIVITIES
Purchases of property, plant
and equipment (306) (280)
Sale receipts/(costs) incurred
by EBT 16 (1)
Purchase of software (220) (208)
Purchases of businesses (2,390) (1,066)
Payments of deferred/contingent
acquisition (230) (356)
Advances to solicitor re: acquisitions (2,122) -
NET CASH USED IN INVESTING ACTIVITIES (5,252) (1,911)
--------------------- -----------------------
FINANCING ACTIVITIES
Net increase in bank overdraft
and bank loans 1,776 365
Share issue 1,995 237
Dividend payment (129) (114)
NET CASH USED IN FINANCING ACTIVITIES 3,642 488
--------------------- -----------------------
NET INCREASE IN CASH AND CASH - -
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT - -
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT - - OF YEAR
--------------------- -----------------------
HML HOLDINGS PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 2017 or 31 March 2016.
The financial information for the year ended 31 March 2016 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 2017 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 stock exchange.
The preliminary results were authorised for issue by the board of directors on 3 July 2017.
1. PROFIT RECONCILIATION
The reconciliation set out below provides additional information to enable the reader to reconcile to the numbers discussed in the Chairman's and Chief Executive's report
2017 2016
GBP'000 GBP'000
Revenue 20,910 18,564
Direct operating expenses (17,796) (15,643)
----------- -----------
Profit contribution from businesses 3,114 2,921
Central operating overheads (1,278) (1,287)
----------- -----------
Profit before interest, tax,
amortisation and share based
payments 1,836 1,634
Finance costs (39) (10)
Profit before share based payment
charges, amortisation and taxation 1,797 1,624
Amortisation of other intangible
assets (467) (390)
Share based payment charge (27) (22)
Profit before taxation 1,303 1,212
=========== ===========
Direct operating expenses and central operating overheads include depreciation and staff costs.
2. PROFIT FROM OPERATIONS 2017 2016
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 306 259
Amortisation of intangible assets 467 390
Operating lease rentals:
- land and buildings 818 628
Set out below is an analysis of other operating expenses;
2017 2016
GBP'000 GBP'000
Employee salaries and staff
related expenses 14,313 12,895
Management costs 265 253
Travel costs 219 187
Advertising costs 84 46
Communications 517 461
Premises costs 2,023 1,709
Professional fees 738 630
IT costs 539 427
Depreciation 306 259
Amortisation 467 390
Share based payment charges 27 22
Other expenses 70 63
Other operating expenses 19,568 17,342
---------- ----------
Amounts payable to the auditor and its related entities in respect of both audit and non-audit services are set out below:
2017 2016
GBP'000 GBP'000
Fees payable for the statutory
audit of the Company's annual
accounts 12 12
Fees payable to auditor for
other services:
Statutory audit of the Company's
subsidiaries 46 39
Total fees payable to the auditor 58 51
========== ==========
3. INCOME TAX 2017 2016
GBP'000 GBP'000
UK Corporation tax:
Current tax on profits of the
year 263 220
(Over provision)/under provision
of tax in previous year (2) (20)
Tax attributable to the company
and its subsidiaries 261 200
========== ==========
Factors affecting tax charge
for the year
The tax assessed for the period is higher than (2016: lower than) the standard rate of corporation tax in the UK of 20% (2016: 20%). The differences are explained below:
2017 2016
GBP'000 GBP'000
Profit before tax 1,303 1,212
---------- ----------
Profit before tax multiplied
by the standard rate of corporation
tax in the UK of 20% (2016:
20%). 260 243
Effects of:
Deferred tax assets not recognised - (32)
Amortisation and non deductible
expenses adjustment 3 9
(Over provision) in previous
year (2) (20)
Tax charge for the year 261 200
========== ==========
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 Hathaways 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 (2016: GBP1,243,000). Consequently, the unprovided deferred tax asset in respect of these losses is GBP211,000 (2016: GBP249,000).
4. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is based on the following data
2017 2016
GBP'000 GBP'000
Earnings
Profit after tax for the period 1,042 1,012
(used to calculate the basic
and diluted earnings per share)
Add back:
Share based payment charge 27 22
Amortisation of intangible assets 467 390
Interest costs 39 10
Adjusted profit after the tax
for the period 1,575 1,434
------------ ------------
The adjusted profit after tax has been used to calculate the basic
and diluted adjusted earnings per share.
Number of shares 2017 2016
'000 '000
Weighted average number of ordinary
shares for the purposes of basic
earnings per share 40,628 37,864
Effect of dilutive potential
ordinary shares:
- share options 1,264 1,701
------------ ------------
Weighted average number of ordinary
shares for the purposes of diluted
earnings per share 41,892 39,565
------------ ------------
Earnings per share
Basic 2.6p 2.7p
Diluted 2.5p 2.6p
Adjusted earnings per share
Basic 3.9p 3.8p
Diluted 3.8p 3.6p
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 April 2016, HML Andertons Limited purchased the trade and assets of Coupe Property Consultants, a business based in Cheltenham. The acquisition provides the Group with a Cheltenham office and reinforces its' trading position as the leading property manager in the South West.
The fair value of net assets acquired is set out below:
GBP'000
Consideration 325
Transaction costs 5
Less: the fair
value of assets:
Customer relationships (170)
---------
Goodwill 160
---------
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 260
Contingent consideration 65
---------
325
---------
On 17 May 2016, HML Hawksworth Limited purchased 100% of the share capital of Homes & Watson Partnership Limited, a business based in Ingatestone. The acquisition will strengthen the Group's position in Essex. On the same day, the trade assets and liabilities of Homes and Watson Partnership Limited were transferred to HML Ashton Chater Limited at net book value as set out below.
The fair value of net assets acquired is set out below:
GBP'000
Consideration 364
Transaction costs 2
Less: the fair
value of assets:
Customer relationships (183)
---------
Goodwill 183
---------
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 291
Contingent consideration 73
---------
364
---------
On 25 May 2016, HML Hathaways Limited purchased 100% of the share capital of Arkleygate Limited, a business based in Borehamwood. The trade and assets of
Arkleygate Limited were transferred into HML Hathaways Limited on acquisition.
The fair value of net assets acquired in the acquisition are set out below:
GBP'000
Consideration 256
Transaction costs 5
Less: the fair
value of assets
Customer relationships (139)
Goodwill 122
---------
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 205
Contingent consideration 51
Total consideration 256
----------
On 2 June 2016, HML Andertons Limited purchased 100% of the share capital of Crown Leasehold Management Limited, a property management business based in Bristol. The acquisition will strengthen the Group's position in the South West and gives the business an office in Bristol. The trade and assets of Crown Leasehold Management Limited were transferred to HML Andertons Limited on acquisition.
The fair value of net assets acquired is set out below:
GBP'000
Consideration 291
Transaction costs 2
Less: the fair
value of assets:
Customer relationships (149)
---------
Goodwill 144
---------
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 233
Contingent consideration 58
---------
291
---------
On 1 February 2017, HML Andertons Limited purchased 100% of the share capital of Goodacre Property Services Limited, a property management business based in Keston, Kent. On acquisition the trade and assets were transferred to HML Andertons Limited. The acquisition will strengthen the Group's position in Kent and gives the business an office in Keston.
The fair value of net assets transferred is set out below:
GBP'000
Consideration 474
Transaction costs 9
Less: the fair
value of assets:
Customer relationships (244)
---------
Goodwill 239
---------
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 318
Contingent consideration 156
---------
474
---------
On 1 March 2017, HML Andertons Limited purchased 100% of the share capital of Gordon & Company (Property Consultants) Limited, a property management business based in Southern England. On acquisition, the trade and assets were transferred to HML Andertons Limited. The acquisition will strengthen the Group's position in the region and gives the business offices in Reigate and Bristol.
The fair value of net assets transferred is set out below:
GBP'000
Consideration 1,704
Transaction costs 11
Less: the fair
value of assets:
Customer relationships (753)
---------
Goodwill 962
---------
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 997
Contingent consideration 707
---------
1,704
---------
6. SHARE CAPITAL
Group and Company
2017 2016
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
2017 2016
Allotted, issued and fully paid GBP'000 GBP'000
ordinary shares of 1.5p:
1 April 583 561
Issued during the year - 5,874,750
shares 88 22
-------------- --------------
31 March 671 583
-------------- --------------
No. of shares in issue at year
end 44,758,096 38,883,346
============== ==============
Shares issued during the year ended 31 March
2017 related to the exercising of share options
by HML staff in August 2016 and February 2017
and an equity fund raising in December 2016.
7. DIVIDENDS
The Directors have proposed paying a dividend of 0.37p per share in relation to the current year (2016: 0.33p per share).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EASXDESEXEFF
(END) Dow Jones Newswires
July 04, 2017 02:00 ET (06:00 GMT)
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