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 yearend 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 ++++++++++++++++ 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 +++++++++++++++ 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.-------------------
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