TIDMHMLH
RNS Number : 5379I
HML Holdings PLC
27 November 2018
HML HOLDINGS Plc
("HML")
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 2018.
Highlights for the six-month period:
-- Revenue up 7% to GBP13.6 million (2017: GBP12.7 million)
-- 11% increase in profit from operations before interest,
amortisation, share based payment charges and taxation to GBP1.12
million (2017: GBP1.01 million)
-- Cash generated from operations was GBP1.56 million (2017: GBP1.04 million)
-- Adjusted earnings per share 2.2p (2017: 1.9p). Adjusted
earnings are calculated before interest, amortisation and share
based payment charges.
-- Net debt reduced to GBP0.96 million (2017: GBP1.47 million)
Commenting on the results, Robert Plumb, Chief Executive Officer
of HML Holdings Plc said:
"This is an encouraging set of results for the first half of the
year, especially when considered against the backdrop of an
uncertain UK property market. To have recorded record half year
earnings while we implement significant operational changes
demonstrates that we are moving in the right direction as we create
a property management services group fit to meet the challenges of
the future."
For further information:
HML Holdings Plc Tel: 020 8439 8529
Robert Plumb, Chief Executive Officer
James Howgego, Chief Financial 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 - Corporate Broking
REVIEW OF BUSINESS
We are pleased to report earnings before interest, share based
payments, amortisation and tax of GBP1.12m (2017: GBP1.01m)
representing a 11% increase on the first 6 months of last year.
Operating margins before and after taking into consideration
central overhead costs improved to 13.0% (2017: 12.6%) and 8.3%
(2017: 7.9%) respectively.
The growth in revenues and earnings is almost entirely organic
as the Group has made no material acquisitions since 1 April 2017.
In most areas our revenues remain resilient despite the uncertainty
surrounding investment in the property sector. Most notably we
recorded a strong improvement in health and safety inspections fee
income which, to some extent, offset the fall in pre-contract
enquiry fees on property sales. Although this latter transaction
type represents only 3.5% of income the reduction in activity
clearly impacted what would have been a very strong overall
improvement in like for like revenues.
During the first half of the year, management continued to
implement the planned reorganisation of segments of client
processing to our back office in West Croydon and we are pleased to
report that these changes, which will have a long term positive
impact on efficiency and cost, are continuing to take place without
a material impact on our levels of service provision. In the second
half of the year we look forward to implementing the streamlining
of our systems onto one database platform. This will create further
efficiencies by allowing our divisions and offices to access and
process transactions on one system.
We continue to enjoy steady and improving volumes of new
business with a marginal shift towards tendering for larger blocks
and housing estates. Competition particularly from the smaller
unregulated players who price keenly in the smaller block market
remains strong. The growing awareness of the impending regulation
of agents, now more frequently reviewed in the property press,
continues to bring sellers to the market. HML remains confident in
its ability to carefully select and integrate those businesses that
are compatible with our service strategy. From a steady foundation
in the first half of the year, we look forward to being able to
update you on further improvements in the second half of the
year.
Robert Plumb
Chief Executive Officer
26 November 2018
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 September 2018
Unaudited Unaudited
6 months 6 months Audited
to to Year ended
30 September 30 September 31 March
2018 2017 2018
Continuing operations Notes GBP'000 GBP'000 GBP'000
------------------------------------- --------- --------------- --------------- -------------
Revenue 13,557 12,717 25,968
------------------------------------- --------- --------------- --------------- -------------
Direct operating expenses (11,788) (11,113) (22,509)
------------------------------------- --------- --------------- --------------- -------------
Central operating overheads (649) (596) (1,248)
Share based payment charge (18) (15) (30)
Amortisation of intangible
assets (320) (280) (660)
------------------------------------- --------- --------------- --------------- -------------
Total central operating overheads (987) (891) (1,938)
------------------------------------- --------- --------------- --------------- -------------
Operating expenses (12,775) (12,004) (24,447)
------------------------------------- --------- --------------- --------------- -------------
Profit from operations 782 713 1,521
Finance costs (26) (30) (57)
Profit before taxation 4 756 683 1,464
Income tax charge (140) (130) (302)
------------------------------------- --------- --------------- --------------- -------------
Profit for the period attributable
to equity holders of the parent 616 553 1,162
Other comprehensive income - - -
------------------------------------- --------- --------------- --------------- -------------
Total comprehensive income
for the period attributable
to equity holders of the parent 616 553 1,162
------------------------------------- --------- --------------- --------------- -------------
Earnings per share
Basic 5 1.4p 1.2p 2.6p
Diluted 5 1.3p 1.2p 2.5p
------------------------------------- --------- --------------- --------------- -------------
Adjusted earnings per share
Basic 5 2.2p 1.9p 4.2p
Diluted 5 2.1p 1.9p 4.1p
------------------------------------- --------- --------------- --------------- -------------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
COMPANY NUMBER: 5728008
Unaudited Unaudited Audited
30 September 30 September 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
-------------------------------- --------------- --------------- -----------
ASSETS
Non-Current Assets
Goodwill 10,510 10,474 10,510
Other intangible assets 7,748 8,144 7,937
Property, plant and equipment 1,060 858 786
19,318 19,476 19,233
-------------------------------- --------------- --------------- -----------
Current Assets
Trade and other receivables 3,225 3,249 3,930
Cash at bank 516 - 269
3,741 3,249 4,199
-------------------------------- --------------- --------------- -----------
TOTAL ASSETS 23,059 22,725 23,432
--------------------------------- --------------- --------------- -----------
LIABILITIES
Current Liabilities
Trade and other payables 5,198 5,821 6,112
Bank overdraft and borrowings 529 739 529
Current tax liabilities 341 344 349
--------------------------------- --------------- --------------- -----------
6,068 6,904 6,990
-------------------------------- --------------- --------------- -----------
Non-Current Liabilities
Bank borrowing 943 1,471 1,207
Deferred tax 1,124 753 1,124
Non-current tax liabilities 140 130 -
--------------------------------- --------------- --------------- -----------
2,207 2,354 2,331
-------------------------------- --------------- --------------- -----------
TOTAL LIABILITIES 8,275 9,258 9,321
--------------------------------- --------------- --------------- -----------
NET ASSETS 14,784 13,467 14,111
--------------------------------- --------------- --------------- -----------
EQUITY
Share capital 686 681 682
Share premium 2,485 2,433 2,450
Other reserves (88) (90) (88)
Merger reserve (15) (15) (15)
Retained earnings 11,716 10,458 11,082
--------------------------------- --------------- --------------- -----------
TOTAL EQUITY 14,784 13,467 14,111
--------------------------------- --------------- --------------- -----------
30 September 2018
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months ended 30 September 2018
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
2017 671 2,251 (70) (15) 10,058 12,895
--------------------- ----- ------- ------ ------ -------- --------
Total comprehensive
income for the period - - - - 553 553
Share based payment
charge - - - - 15 15
Share capital issued 10 182 - - - 192
Dividend - - - - (168) (168)
Shares purchased by
EBT - - (20) - - (20)
Balance at 30 September
2017 681 2,433 (90) (15) 10,458 13,467
-------------------------- ----- ------- ------ ------ -------- --------
Total comprehensive
income for the period - - - - 609 609
Share based payment
charge - - - - 15 15
Share capital issued 1 17 - - - 18
Shares sold by EBT - - 2 - - 2
Balance at 31 March
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
-------------------------- ----- ------- ------ ------ -------- --------
HML HOLDINGS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended 30 September 2018
Unaudited Unaudited Audited
6 months 6 months Year ended
to to 31 March
Notes 30 September 30 September 2018
2018 2017 GBP'000
GBP'000 GBP'000
---------------------------------------------------- --------- --------------- --------------- -------------
Operating activities
Cash generated from operations 6 1,562 1,037 2,674
Income taxes (paid)/refunded (8) 48 (238)
Interest paid (26) (30) (57)
Net cash from operating activities 1,528 1,055 2,379
---------------------------------------------------- --------- --------------- --------------- -------------
Investing activities
Purchase of property, plant and equipment (454) (313) (410)
Acquisition of own shares - (20) (18)
Purchase of software (120) (119) (235)
Acquisition of businesses (6) (2,237) 41
Payment of deferred/contingent consideration (476) (92) (337)
Transfer from/(to) solicitor re: acquisition - 2,122 (2,122)
---------------------------------------------------- --------- --------------- --------------- -------------
Net cash used in investing activities (1,056) (659) (959)
---------------------------------------------------- --------- --------------- --------------- -------------
Financing activities
Repayment of loans (264) (150) (414)
Net movement in overdraft - (438) (648)
Shares issued 39 192 79
Dividend payment - - (168)
Net cash from financing activities (225) (396) 1,151
---------------------------------------------------- --------- --------------- --------------- -------------
Increase in cash and cash equivalents 247 - 269
Cash and cash equivalents at beginning of period 269 - -
---------------------------------------------------- --------- --------------- --------------- -------------
Cash and cash equivalents at end of period 516 - 269
==================================================== ========= =============== =============== =============
HML HOLDINGS PLC
NOTES TO THE ACCOUNTS
Six months ended 30 September 2018
1. General Information
The interim unaudited financial information was approved by the
board on 26 November 2018.
The results for the year ended 31 March 2018 have been audited
whilst the results for the six months ended 30 September 2017 and
30 September 2018 are unaudited. The financial information
contained in this interim report does not constitute statutory
accounts for the year ended 31 March 2018. 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 2019. IFRS 9
Financial Instruments and IFRS 15 Revenue from Contracts with
Customers have been applied for the first time in preparing the
interim financial information. The Directors consider that the
application of these standards has not had a material impact on the
recognition and measurement of items in the interim financial
information.
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 2018 is based on the
effective rate of taxation of 19% which is estimated to apply for
the year ending 31 March 2019.
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 2017 2018
2018 GBP'000 GBP'000
GBP'000
---------------------------------------- --------------- --------------- -------------
Operating profit before interest,
share based payment charges,
amortisation and taxation 1,120 1,008 2,211
Finance costs (26) (30) (57)
---------------------------------------------- --------------- --------------- -------------
Operating profit before share
based payment charges, amortisation
and taxation 1,094 978 2,154
Share based payment charge (18) (15) (30)
Amortisation of intangible
assets (320) (280) (660)
Profit before taxation 756 683 1,464
---------------------------------------------- --------------- --------------- -------------
5. Earnings per share Unaudited Unaudited Audited
6 months 6 months to Year ended
to 30 September 31 March
30 September 2017 2018
2018 GBP'000 GBP'000
GBP'000
----------------------------------- --------------- --------------- -------------
Profit after tax for the period
(GBP'000s)
(used to calculate the basic
and diluted earnings per share)
Add back: 616 553 1,162
Share based payment charge 18 15 30
Amortisation of intangible
assets 320 280 660
Finance costs 26 30 57
----------------------------------------- --------------- --------------- -------------
Adjusted profit after tax for
the period (GBP'000s) (used
to calculate the basic and
diluted adjusted earnings per
share) 980 878 1,909
----------------------------------------- --------------- --------------- -------------
Weighted average number of
shares (000s)
For basic earnings per share 45,526 45,135 45,269
Effect of dilutive potential
ordinary shares:
- share options 696 1,106 857
Fully diluted 46,222 46,241 46,126
Earnings per share
Basic 1.4p 1.2p 2.6p
Diluted
Adjusted earnings per share 1.3p 1.2p 2.5p
Basic 2.2p 1.9p 4.2p
Diluted 2.1p 1.9p 4.1p
----------------------------------------- --------------- --------------- -------------
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 2017 2018
2018 GBP'000 GBP'000
GBP'000
-------------------------------------- --------------- --------------- -------------
Profit from operations 782 713 1,521
Adjustments for:
Share-based payment charge 18 15 30
Depreciation of plant and equipment 180 156 372
Amortisation of intangible
assets 320 280 660
Loss on disposal of fixed assets - - 9
Operating cash flows before
movements in working capital 1,300 1,164 2,592
Decrease/(increase) in trade
and other receivables 705 248 (298)
(Decrease)/increase in trade
and other payables (443) (375) 380
Cash generated from operations 1,562 1,037 2,674
-------------------------------------------- --------------- --------------- -------------
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END
IR FKADQABDDCDB
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