News blog

HML Holdings

  • BY: Andrew Hore |
  • POSTED: 01/11/2013 |

Residential property management services provider HML Holdings has made two acquisitions in the past fortnight and the share price has more than doubled since its full year figures were published in June.

HML has taken a further step in its expansion in the North West following the acquisition of Knutsford-based The Guthrie Partnership last year. Bolton-based Philip R Gibbs has been acquired for £300,000, with £60,000 deferred and based on client retention. This business generates annual revenues of £220,000 from more than 1,500 units in Greater Manchester.  This takes the number of managed units in the North West to 5,500.

That deal was followed up with the purchase of the block management operations of Kensington-based LHH Management for £290,000, with £58,000 deferred with one year and based on client retention. This adds more than 400 units in Kensington and Chelsea generating annual revenues of £210,000. These units will be managed from HML’s Victoria office.

Both the acquisitions were non-core operations of the businesses that used to run them. And this is a potential source of future add-on acquisitions. 

Net cash of around £500,000 had been expected at the end of March 2014 but these two acquisitions will use up most of that cash.

Interim figures will be published on 12 November. HML plans to start payingdividends. House broker finnCap currently forecasts a rise in pre-tax profit from £1m to £1.2m. At 31.5p a share, HML is valued at £11.4m. The shares are trading on 10 times prospective 2013-14 earnings and have a forecast yield of around 1%.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2013_49.pdf

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