REG - MHA PLC - Trading Update

MHAAnnouncement

06/06/2025 07:00

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RNS Number : 7040L  MHA PLC  06 June 2025

6 June 2025

 

MHA plc

("MHA", the "Company" and together with its subsidiaries the "Group")

 

Trading Update

 

MHA (AIM: MHA), a leading professional services provider of audit and
assurance, tax, accountancy and advisory services, is pleased to announce an
update on trading for the year ended 31 March 2025 ("FY25") ahead of its full
year results, which are expected to be announced in early August 2025.

 

The Group achieved a successful AIM IPO shortly following the year end,
raising gross proceeds of £97.8m, and enabling the Group to invest in
technology, including AI, and further bolt-on acquisitions to accelerate
growth.

 

As reported in the Company's Admission Document, the Group continued to trade
strongly in H2, with revenue growth, operating margins and cash generation in
line with the Directors' expectations.  The Group enjoyed a particularly
strong final quarter across all divisions, traditionally the most active for
the Group, as many corporate clients move into their annual audit cycle and
tax clients' filing and payment deadlines arise.

 

Subject to audit, the Group expects to report FY25 revenues of approximately
£224m, up 45.4% on the prior year (FY24: £154m), EBITDA* of approximately
£84m (stated prior to Partner Remuneration under the historical LLP
structure), up 36.4% on the prior year (FY24: £61.6m) and adjusted EBITDA**
of approximately £41m (applying the new PLC structure on a post-Partner
remuneration basis), up 32.3% on the prior year (FY24: £31m), ahead of market
expectations*** (see note 1).

 

The Group has a healthy balance sheet with an unaudited net cash balance as at
31 March 2025 of approximately £18.7m (FY24: £25.8m), further bolstered by
the IPO net proceeds.

 

The IPO has increased the Company's profile as hoped, and the Board is pleased
with the level of enquiries regarding new business and acquisition
opportunities. In line with its acquisition strategy, on 7 May 2025, MHA
announced the proposed acquisition of Baker Tilly South East Europe Holdings
Limited ("BTSEE"), a leading professional services firm offering a
comprehensive range of services to clients in Cyprus, Greece and South East
Europe, predominantly in audit, tax, advisory, legal and corporate services.
It is expected that the acquisition will be earnings-enhancing within the
first full financial year following completion. A further announcement will be
made in due course.

 

Despite wider market volatility in FY26 to date, the Group has continued to
see rising demand for high-quality advisory services. Increasing regulatory
complexity remains a key driver.

 

 

Rakesh Shaunak, Chief Executive Officer of MHA, commented:

 

"The Group continued to see strong growth across all of its service lines
throughout FY25 building on our strong platform based on organic and
successful acquisitive expansion. All of our core sectors performed above
expectations during the year most notably, consumer products, manufacturing
and engineering and technology.

 

The Group is well-placed to build on the strong momentum established in recent
years, enabling MHA to scale at pace and drive further innovation while
continuing to deliver high client standards. These factors, together with the
long-term structural growth drivers that underpin demand for MHA's services
and the Group's compelling proposition to clients, give the Board confidence
that the Group remains well-positioned for continued growth, in line with its
medium-term goal of exceeding £500 million in annual revenues."

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

 

Note 1: The Company's first statutory accounting period will cover the period
ending 31 March 2026 and the Company's first consolidated financial
information will comprise the unaudited results for the six-month period
ending 30 September 2025. The financial information contained in this update
for FY25 reflects the combined results of the constituent companies within the
Group prepared on the same basis as the historic financial information set out
in the Company's admission document dated 10 April 2025.

 

* EBITDA is the Group's operating profit adjusted for depreciation and
amortisation. Prior to admission to AIM, MHA was a partnership and therefore
historical EBITDA figures are reported prior to distribution of profits to its
Partners.

 

** Adjusted EBITDA  illustrates EBITDA performance on a post-partner
remuneration basis, consistent with how the Company will report EBITDA going
forwards as a PLC.

 

*** The Group believes current market expectations for FY25 to be revenue of
£216.0m and adjusted EBITDA of £40.1m.

 

Contacts:

 

 MHA                                                                            www.mha.co.uk (http://www.mha.co.uk/)
 Rakesh Shaunak, Chief Executive Officer                                        via Alma
 Steven Moore, Chief Financial Officer

 Cavendish Capital Markets Limited

 (Nominated Adviser & Broker)
 Stephen Keys, Callum Davidson, Katy Birkin (Corporate Finance)                 +44 (0)20 7220 0500

 Michael Johnson (Sales)
 Tim Redfern, Sunila de Silva (ECM)

 Alma Strategic Communications                                                  mha@almastrategic.com
 Andrew Jaques, Josh Royston, Hilary Buchanan, David Ison, Will Ellis Hancock,  +44 (0)20 3405 0205
 Sarah Peters

 

 

 

 

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