MBH Corporation Plc
Original-Research: MBH Corporation plc (von GBC AG): BUY
Original-Research: MBH Corporation plc – von GBC AG
Einstufung von GBC AG zu MBH Corporation plc
Unternehmen: MBH Corporation plc
ISIN: GB00BF1GH114
Anlass der Studie: Research Note
Empfehlung: BUY
Kursziel: 1,72 Euro
Kursziel auf Sicht von: 31/12/2021
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann
Fifth acquisition in 2020 reported, financing under the bond programme,
forecasts slightly increased, BUY rating confirmed
After MBH Corporation plc (MBH) was able to expand its investment portfolio
by three new companies (Samuel Hobson House, Robinson Caravans, Logistica
Training) in the first half of 2020, two new acquisitions were recently
added to the portfolio. At the end of July 2020, the acquisition of GS
Contracts (Joinery) Limited (GS Contracts) was reported as the 14th
acquisition in the MBH history. Similar to Cape Ltd., which is already
included in the MBH portfolio and is active in New Zealand, GS Contracts
specialises in the interior design of retail and catering facilities. The
company offers services such as design management, project management,
furnishing and custom manufacturing. In the past fiscal year (fiscal year-
end December 31, 2019), GS Contracts generated revenues of GBP 5.3 million
and, according to our information, should have generated a positive EBIT.
In the run-up to this acquisition, the MBH portfolio company Gaysha Ltd.
has already worked together with GS Contracts, which means that a vertical
integration can be implemented quickly. Gaysha Ltd., a company that offers
extension and renovation services, could use the production facilities of
GS Contracts and thus reduce its dependence on suppliers.
A further takeover was reported on 17.08.2020 with the acquisition of
Ashley David Taxis (ADT), a taxi company based in the UK. This acquisition
creates the new MBH segment ‘Transport’. Founded in 2002, ADT owns 150
vehicles and employs around 600 drivers. In the period May 2019 – April
2020, which thus partly includes the effects of the Covid 19 pandemic, ADT
generated revenues of GBP 3.9 million and an EBITDA of GBP 0.8 million. Of
particular interest to MBH is the technological approach of ADT. Around 70%
of bookings are made via the app developed in-house and the fleet is
completely cloud-based. Further business growth in the highly fragmented
taxi market in Great Britain could be supported by the Corporate Driving or
Food Delivery divisions.
The purchase prices for both acquisitions of GBP 1.7 million (GS Contracts)
and GBP 3.4 million (ADT) will be largely paid for by the listed bond
issued for the first time in July 2020. Up to now, the company had
primarily implemented the portfolio expansion by means of non-cash capital
increases. However, due to the current low price level of the MBH share,
but also in order to limit the dilution effect in the future, the company
has set up a bond program with a volume of up to EUR 50 million. Bonds can
be issued to the selling party as part of corporate acquisitions, which
also significantly increases financing flexibility. The 5-year bonds have a
semi-annual interest coupon of 5.0 % p.a. In addition, MBH has issued a
euro-denominated bond with a coupon of 2.0 %.
With the acquisition of the two companies, pro forma revenues as of
December 31, 2019 will increase to GBP 85.4 million annually. With the
announcement of the commencement of listing of the corporate bond, the MBH
management has once again confirmed its plans to make around 10
acquisitions over the year as a whole. In view of the five corporate
acquisitions made so far in 2020, this target appears realistic. In our
previous forecasts (see study dated June 29, 2020), we had assumed a total
of five acquisitions for the full year 2020, which has now been achieved
with the acquisition of Ashley David Taxis. As a result, we are increasing
the number of acquisitions forecast for 2020 to a total of eight and are
therefore expecting three more acquisitions.
For the coming corporate acquisitions, we have also assumed financing
primarily within the framework of the bond program, which will result in an
increase in borrowed capital with correspondingly higher financial
expenses. On the other hand, this will lead to a significantly lower
dilution effect. In our DCF valuation model, we have also made a slight
change in the cost of debt, which has slightly reduced the WACC. Since the
number of outstanding shares increased significantly to 61.4 million
(previously: 49.2 million), the result of the DCF model is subject to a
dilution effect. Although the fair enterprise value calculated by us
increases to GBP 95.11 million (previously: GBP 83.65 million), the fair
value per share is GBP 1.55 (previously: GBP 1.70) due to the higher number
of shares.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/21451.pdf
Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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Date (time) of completion: 24.08.2020 (10:03 am)
Date (time) of first distribution: 26.08.2020 (9:30 am)
Target price valid until: max. 31.12.2021
——————-übermittelt durch die EQS Group AG.——————-
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
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