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HML Holdings

  • BY: Andrew Hore |
  • POSTED: 25/06/2008 |

Residential property manager HML continues to grow despite the tough outlook for new build.

Revenues increased 29% to £7.5m in the year to March 2008. This growth was partly organic and partly via acquisitions. Pre-exceptional profits increase 40% to £442,000.

Units under management grew 19% to more than 25,000, while average revenue per unit also improved. Most of the growth came from management fees and services but insurance commissions and surveying work also grew well. Recurring income – management fees and insurance commissions – held steady at 86% of total revenues.

That high recurring income helps to insulate HML from the general residential market malaise. More and more new business is from existing blocks of flats transferring over from another manager. This new business is based on service rather than the state of the market.

HML is cash generative and has £380,000 in the bank. It is keen to make more add-on acquisitions.

The company would also like to open new offices in Kent, Essex and Bristol.

House broker Daniel Stewart forecasts a rise in profits to £647,000 in 2008-09. That puts the shares, at 16.5p, on just under 10 times prospective earnings. Profits could rise to £833,000 the following year.

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