HMLH.L Regulatory News (HMLH)

HML HOLDINGS Plc

("HML")

HALF YEAR RESULTS

HML Holdings Plc (AIM: HMLH), the property management services group, today announces its interim results for the six months to 30 September 2017.

Highlights for the six-month period:

· Revenue up 25% to £12.7 million (2016: £10.2 million)

· 10% increase in profit from operations before interest, amortisation, share based payment charges and taxation to £1,008,000 (2016: £920,000)

· Continued integration of new acquisitions

· Adjusted earnings per share 1.9p (2016: 2.1p). Adjusted earnings are calculated before interest, amortisation and share based payment charges.

Commenting on the results, Robert Plumb, Chief Executive Office of HML Holdings Plc said:

"We are pleased to report a 25% growth in revenue for the period and the on-going successful integration of our recent acquisitions. While we have incurred additional one-off costs during the reorganisation of the offices associated with acquisitions and have made further investment in building capacity for further growth, we are also pleased to report both a 10% growth in half-year earnings before interest, amortisation, share based payment charges and taxation and substantial growth in our new business pipeline."

For further information:

HML Holdings Plc Tel: 020 8439 8529

Robert Plumb, Chief Executive Officer

James Howgego, Chief Financial Officer

Tavistock Communications Limited Tel: 020 7920 3150

Jeremy Carey

James Verstringhe

FinnCap Tel: 020 7220 0500

Jonny Franklin-Adams/Giles Rolls - Corporate Finance

Mia Gardner - Corporate Broking

HML HOLDINGS PLC

STRATEGIC REPORT

REVIEW OF BUSINESS

We are pleased to report a 25% increase in revenue to £12.7m over the equivalent period last year and a 10% increase in earnings before interest, share-based payments, amortisation and tax to £1.0m (2016: £0.9m). As we continue to invest in the business, additional one-off costs primarily relating to the integration of acquisitions and associated investments in infrastructure have impacted operating costs during the first half, which is reflected in the reduced earnings per share for the period of 1.9p (2016: 2.1p).

Insurance brokerage revenue rose by 16% as the process of assimilating clients from our acquisitions gathered pace during the first half of the year. Professional fees increased 45% with a significant additional contribution from our new Central London operation; Faraday Property Management Limited which was acquired on 1 April 2017. Legal and professional fees arising from pre-contract enquiries and the administration of property sales and alterations were proportionately lower than last year as the volume of transactions, particularly in Central London reduced in line with market sentiment. Although there have been only modest improvements in revenues arising from health and safety inspections and concierge staff management, we have invested further in improving the capacity of both departments and anticipate greater contributions in the second half of the year.

Market sentiment surrounding the demand for new building development remains positive, although delivery and completion remains frustratingly slow. HML has record levels of confirmed instructions with a pipeline of over 17,000 units. We anticipate the rate at which this pipeline becomes operational will improve with the government's stated preparedness to support the home building industry.

Apart from the ongoing development of our property management systems, we have made further improvement to our information technology infrastructure, both in terms of greater cyber security and digitised transaction processing and filing systems. We have also made a significant investment in the creation of a back office in new offices in West Croydon, which has impacted costs in the short term but provides us with the opportunity for standardising and streamlining many of our support functions in a lower cost environment.

I have commented in several industry reports on the growing divide of service and regulatory compliance between the managing agents that choose to comply with the professional standards of the Royal Institution of Chartered Surveyors and the Association of Residential Managing Agents and those that operate entirely independently of their strictures. There is no doubt that the freedom offered to unregulated players has not only created an unfair competitive advantage for them but has fuelled the perception of impropriety for a property management service that is frequently misunderstood. We are therefore extremely pleased to hear the Secretary of State for Communities and Local Government's announcement that the activities of lettings and managing agents will be regulated.

HML has made a significant investment in ensuring that we comply with the codes of conduct of all our regulatory bodies and we believe that this investment will yield a significant advantage when all managing agents are obliged to comply with what we anticipate will be specific regulatory requirements.

Robert Plumb

Chief Executive Officer

29 November 2017

HML HOLDINGS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

HML HOLDINGS PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

COMPANY NUMBER: 5728008

HML HOLDINGS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

HML HOLDINGS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

HML HOLDINGS PLC

NOTES TO THE ACCOUNTS

1. General Information

The interim unaudited financial information was approved by the board on 29 November 2017.

The results for the year ended 31 March 2017 have been audited whilst the results for the six months ended 30 September 2016 and 30 September 2017 are unaudited. The financial information contained in this interim report does not constitute statutory accounts for the year ended 31 March 2017. The statutory accounts for that year, which were prepared under International Financial Reporting Standards ('IFRS'), have been delivered to the Registrar of Companies. The auditor's opinion on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.

Copies of the interim report are available from www.hmlgroup.com or from the Company Secretary at HML Holdings plc, 9-11 The Quadrant, Richmond, Surrey, TW9 1BP.

2. International Financial Reporting Standards

The consolidated financial information has been prepared using accounting policies consistent with IFRS as adopted by the European Union applied in accordance with the provisions of the Companies Act 2006.

The accounting policies applied are consistent with those of the audited annual financial statements for the year ended 31 March 2017 and expected to apply for the year ended 31 March 2018.

Whilst the financial figures included in this interim report have been computed in accordance with IFRS, this interim report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.

3. Taxation

Taxation for the six months to 30 September 2017 is based on the effective rate of taxation of 19% which is estimated to apply for the year ending 31 March 2018.