MHA results: Revenue rises 12% as cash generation strengthens

MHA delivers growth in its first full year on AIM

MHA has reported a solid set of preliminary results for the year ended 31 March 2026, combining organic revenue growth, acquisition-led expansion and stronger cash generation.

The professional services group, which provides audit, tax, accountancy and advisory services, increased revenue by 12% to £251.3 million. Adjusted EBITDA rose 13% to £46.5 million, in line with previously upgraded market expectations.

That is a respectable first full-year performance as a listed company. Importantly, growth was not dependent on acquisitions alone. Organic revenue increased by 6.4%, while acquisitions contributed a further 5.8%.

The results are preliminary and unaudited, although MHA expects them to be the same in all material respects to the audited accounts due by 30 July 2026.

MHA's key FY26 figures

Metric	FY26	FY25	Change
Revenue	£251.3 million	£224.1 million	12%
Organic growth	6.4%	Not disclosed	Not disclosed
Acquisition growth	5.8%	Not disclosed	Not disclosed
Adjusted EBITDA	£46.5 million	£41.2 million	13%
Adjusted EBITDA margin	18.5%	18.4%	0.1 percentage points
Adjusted profit before tax	£39.2 million	£35.3 million	11%
Adjusted cash conversion	115%	89%	26 percentage points
Net cash	£25.4 million	£17.7 million	£7.7 million higher
Basic and diluted earnings per share	11.1p	No comparable figure	Not applicable
Total dividend per share	5.2p	Not disclosed	Not disclosed

Adjusted EBITDA means earnings before interest, tax, depreciation and amortisation, with further adjustments for items management considers non-underlying. These included IPO costs, share-based payments and acquisition-related items.

Organic growth supports the investment case

One of the more encouraging features is the balance between organic and acquired growth.

Existing client fee increases contributed £13.2 million to the revenue bridge, while new clients and wins billed during the year added £15.9 million. This more than offset a £14.8 million reduction from completed projects and lost clients.

Recurring revenue remained approximately 87% of the total. For investors, that high level of repeat business should provide better revenue visibility than a model dominated by one-off projects.

There was also growth across all four service lines:

Service line	FY26 revenue	Growth
Audit & Assurance	£124.5 million	9%
Tax	£46.3 million	13%
Advisory	£70.8 million	15%
Wealth	£9.7 million	20%

Audit & Assurance remains the largest division, accounting for 50% of group revenue. That provides scale and recurring work, although it also means MHA remains materially exposed to the performance and regulation of the audit market.

Sector performance was led by Financial Services, up 22%, and Professional Services, up 23%. Manufacturing & Engineering grew 16%. Fees from clients quoted on capital markets increased 16%, including 15% organic growth within that client base.

No single customer represented more than 10% of revenue, reducing dependence on any one client.

Margins hold firm despite listed-company costs

Adjusted EBITDA increased slightly faster than revenue, while the margin edged up from 18.4% to 18.5%.

A 0.1 percentage point improvement is modest, but management said operating leverage and cost control more than offset the extra overheads of operating as an AIM-listed company. Maintaining the margin while integrating acquisitions and investing in systems is therefore a positive result.

Investors should treat the adjusted numbers with appropriate care, however. MHA's FY25 statutory figures reflect its previous partnership structure, under which partner remuneration was allocated from profit rather than recorded as an expense. FY26 reflects the post-IPO structure, where partner remuneration is charged to profit.

This means statutory profit figures are not directly comparable. Reported FY26 profit before tax was £36.3 million, while adjusted profit before tax was £39.2 million. The adjusted measures provide the cleaner year-on-year comparison, but they still rely on management's judgement over which costs are non-underlying.

Cash conversion is a standout feature

Adjusted operating cash conversion improved from 89% to 115%. In simple terms, MHA converted more than all its adjusted operating profit into operating cash during the year.

Net cash increased from £17.7 million to £25.4 million at 31 March 2026. Cash and cash equivalents stood at £28.5 million, while the group also had an undrawn £5 million overdraft facility.

This balance-sheet position gives MHA flexibility to invest, pay dividends and pursue acquisitions. The company said that even under a severe downside scenario involving a 10% decline in demand during FY27 and FY28, it would remain cash positive without using its overdraft facility.

There is one working-capital measure to watch. Lock-up, which reflects the time between doing work and collecting cash, increased from 71 days to 76 days. That has not prevented strong cash conversion this year, but a continued rise could tie up more cash as the business grows.

International acquisitions broaden the platform

MHA completed the acquisition of Baker Tilly South-East Europe in August 2025 and bought Moore Stephens UAE shortly after the year end in April 2026.

The first deal added operations in Cyprus, Greece, Romania, Bulgaria and Moldova, while the second extended MHA into the UAE. Both are expected to enhance earnings within their first 12 months in the group.

The strategy gives MHA additional geographical reach and should support clients requiring advice across multiple countries. Management also described the acquisition pipeline in the UK and overseas as healthy.

The other side of that opportunity is execution risk. Integrating firms across different countries, regulatory systems and working cultures can be complicated. Acquisition prices for future deals, expected integration costs and the scale of potential transactions were not disclosed.

Dividend and FY27 outlook

The board has proposed a final dividend of 2.2p per share, taking the total FY26 dividend to 5.2p.

Subject to approval at the annual general meeting on 21 August 2026, the final dividend will be paid on 25 September. The shares are due to trade ex-dividend on 27 August, with a record date of 28 August.

Management said FY27 had started positively, supported by resilient demand and a broader operating platform. It continues to see structural growth from increasing regulatory complexity and demand for advisers offering multiple services across borders.

MHA is targeting annual revenue above £500 million over the medium term. That would require revenue to rise to almost twice the FY26 level, making it an ambitious objective. The announcement does not provide a precise deadline, revenue forecast or margin target for reaching it.

What investors should watch next

The FY26 results show a business growing organically, protecting margins and generating cash while extending its international reach. The 87% recurring revenue mix and £25.4 million net cash position are particularly reassuring.

Attention now shifts to whether MHA can maintain organic growth, prevent lock-up from rising further and integrate its overseas acquisitions without weakening margins. Progress towards the £500 million revenue ambition will matter, but the quality and profitability of that growth should be just as important as its pace.