EUR 160.00 For Business Accounts Only

Research Note english - MBH Corporation plc - 26.08.2020

MBH Corporation PLC (MBH) is an investment holding company with subsidiaries in the construction, education, leisure and health-care sectors. The group brings together well-established and profitable small businesses with a buy and hold perspective. Most of these subsidiaries have been purchased by swapping all the business owners’ shares with a new issue of MBH shares. According to this model, the earning contribution of each acquisition mitigates the dilutive effects of the new share issue. As with favorable market
interest rates, MBH has recently started accretive acquisitions backed by debt issues, which cancel out dilution effects. An example is the acquisition of Robinsons Caravans in 2020 which has been settled with a five years unlisted loan and final payment at maturity in cash. MBH´s excellent financial figures for 2019 proved management skills and methods in selecting and supporting the development of various businesses. Each segment has been managed autonomously under a responsible board with a structured earn-out
scheme. The acquisition pipeline remains brisk including strategic and tactical deals. MBH shares have been listed on both the Quotation Board of the Frankfurt Stock Exchange (“FSE”) since November 2018 and on the Düsseldorf Stock Exchange (Prime Market). The management announced a divided of EUR 0.005 cents per share for FY2019.