MJH.L Regulatory News (MJH)

23rd July 2021

MJ Hudson Group plc

(the "Company", "Group" or "MJ Hudson")

Acquisition of Guernsey based fund administration business adds scale and expertise to Group´s existing operations. Notice of Group trading update

MJ Hudson Group plc (AIM:MJH), the specialist service provider to the asset management industry, announces that it has acquired the entire share capital of Saffery Champness Fund Services Limited (´SCFS´), a Guernsey based fund administration business, from the accountancy group Saffery Champness. The acquisition is expected to double MJ Hudson´s fund administration revenues in Guernsey with a 50% increase in local staff numbers. Completion of the transaction remains subject to approval by the Guernsey Financial Services Commission and is expected to be modestly accretive to earnings per share.

Founded in 2007, SCFS´ core services include fund administration and fund accounting as well as valuation and corporate secretarial work. Based in the UK and Northern Europe, SCFS´ largely alternative asset clients have a combined AUM of £418m. A total of seven staff members will transfer to MJ Hudson as part of the transaction. In addition, MJ Hudson is hiring selectively to support its growth. On consolidation, the business will be managed by MJ Hudson´s local management team within its Outsourcing division. The acquisition adds strength in depth to the Group´s Guernsey operations as well as additional expertise in fund systems. SCFS and its clients will benefit from the support of a dedicated funds group with an alternative asset focus.

The maximum consideration for SCFS is £2.8m in cash and is subject to performance criteria over a two-year period. The acquired business generated revenues of £1.4m for the twelve-month period to March 2021 with an EBITDA margin comparable with the Group´s Outsourcing division on a pro forma basis.

MJ Hudson expects to publish a trading update for the twelve months to June 2021 in early August.

Mark Pattimore, Managing Director of International Administration at MJ Hudson said:

"We are pleased to welcome the SCFS team and its clients to MJ Hudson. This acquisition adds scale and expertise to our existing Guernsey operation. Our dedicated funds infrastructure and alternatives expertise will benefit SCFS´ many fund clients. We look forward to supporting the team as it pursues an extended new business pipeline as part of the Group".

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About MJ Hudson

MJ Hudson is a one-stop-shop specialist service provider to the US$100 trillion plus asset management industry, with a focus on its fastest growing segment, alternative investments (which includes private equity, venture capital, real estate and hedge funds).

As outlined at IPO in December 2019, our growth strategy is to develop and acquire new products and services that are needed by our core customer base of asset managers and institutional investors and to extend this customer base in the key markets of North America and Europe. Our strategy benefits from the underlying expansion of the alternative investment subsector and the continuing and growing need for outsourcing and specialist advice as regulation and competition makes operating more challenging for our clients.

Founded in 2010 by CEO Matthew Hudson (a lawyer and former alternative assets fund manager), we have grown quickly to now support more than 1,000 clients, including 18 of the FTSE 100. Our business is transatlantic, with clients clustered around the major asset management centres of Europe and North America. Our team of 240 works out of 11 offices in those same centres.

For more information, please visit our website: investors.mjhudson.com/ 

Linkedin: www.linkedin.com/company/mj-hudson /

Twitter: www.twitter.com/MJHudsonCorp

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation.