MBH Corporation Plc (FRA:MBH), the specialist SME investment holding company, has raised its acquisition target after a strong first half of 2020.
The Frankfurt-listed group completed three deals in the six months to end June but has since taken that to seven and wants the figure to rise to ten or more by the end of the year.
MBH’s strategy is to buy into long-standing and proven businesses, offering the owners an exit opportunity while still enabling them to have some control.
Revenues in the six months to June rose by 31% to GBP27.4mln in spite of the COVID-19 problems, with underlying profits (EBITDA) 13% higher at GBP1.5mln and net profits steady at GBP0.7mln.
MBH ended the half-year with net cash of GBP3.5mln even after paying a maiden dividend with its last full-year figures.
Callum Laing, MBH’s chief executive, said: “After a strong first quarter in 2020 for our portfolio companies, the rest of the year 2020 was clearly marked by the COVID-19 pandemic and was accordingly dominated by new challenges.
“However, it was interesting to see how our companies and the seasoned entrepreneurs learned from each other during the pandemic and adapted quickly to the challenging environment.”
In June 2020, MBH launched a new Dublin-listed EUR50mln medium-term bond, which it said would be used as part of the consideration for incoming business owners.
“This has two clear purposes of offering a hedge to small business owners against any share price volatility, and also allowing us to proceed with accretive acquisitions regardless of the prevailing stock price,” added Laing.