Double-digit growth, solid margins: MHA’s first-half scorecard
MHA plc has posted its first set of interim numbers since April’s AIM listing, and they are comfortably in the “strong and steady” camp. Group revenue rose 13.2% to £121.3 million, with around 9.2% coming organically and the balance from acquisitions. Adjusted EBITDA was up 10.7% to £21.8 million, keeping the EBITDA margin at 18%, which is consistent with last year and reflects the usual second-half weighting for this type of business.
Cash generation looks healthy. Net cash rose to £25.7 million at 30 September 2025, up from £17.6 million at the year-end, and the Board has declared a 1.0p interim dividend. Management says trading is in line with market expectations for FY26 – currently revenue of £249.5 million and adjusted EBITDA of £44 million – which implies a broadly similar growth run rate in H2.
Key numbers investors should know
| Metric | H1 26 | H1 25 |
|---|---|---|
| Revenue | £121.3m | £107.2m |
| Organic growth | ~9.2% | n/a |
| Adjusted EBITDA | £21.8m | £19.7m |
| EBITDA margin | 18% | 18.3% (FY 25) |
| Adjusted PBT | £18.5m | £17.0m |
| Adjusted EPS | 5.3p total; 5.8p basic; 5.8p diluted | n/a |
| Total EPS (unadjusted) | 6.6p total; 7.3p basic; 7.2p diluted | n/a |
| Net cash | £25.7m | £17.6m (31 Mar 2025) |
| Recurring revenue | ~87% | ~87% |
| Interim dividend | 1.0p (ex 27 Nov; record 28 Nov; pay 29 Dec) | n/a |
Where the growth came from: organic wins plus BTSEE
Under the bonnet, the revenue bridge is reassuring. MHA delivered 7.2% fee growth from existing clients and 6.9% from new wins, offset by normal project completions and client churn, with acquisitions (Baker Tilly Ireland and the newly acquired Baker Tilly South-East Europe, “BTSEE”) adding about 4%. That mix says the core engine is working – not just M&A.
By service line, the mix remains stable: Audit & Assurance 52%, Tax 17%, Advisory (accounting and business advisory) 27%, Wealth 4%. Tax grew 17.4% and Advisory 13.3%, helped by regulatory change and cross-border requirements nudging clients towards multi-service providers.
Sectors doing the heavy lifting
MHA’s sector model looks like a competitive edge. Financial Services (£10.8 million, +18%), Manufacturing & Engineering (£10.1 million, +19%), Professional Services (£10.4 million, +12%) and Technology (£8.8 million, +13%) all chalked up double-digit gains. Energy and Natural Resources (+11%) and Agriculture and Rural (+11%) are smaller but accelerating nicely.
Two soft spots: Automotive & Transport was down 19% after an unusually strong prior period, and Healthcare slipped 1%. Those swings look more cyclical than structural, but they are worth watching into H2.
Margins, cash and working capital: resilient with a mild watch-out
An 18% adjusted EBITDA margin is respectable for a people-heavy professional services group, especially given the ongoing investment in technology and integration. Cash conversion remains strong, underpinning net cash of £25.7 million, which comfortably supports the 1.0p interim dividend and selective M&A.
One mild negative: lock-up (the time it takes to convert work into cash) increased to 88 days from 80 days, partly due to BTSEE’s established terms of trade. That is not alarming, but given the enlarged international footprint, discipline on billing and collections will be a key H2 focus to keep cash generation humming.
BTSEE acquisition: strategic reach and a rare bargain purchase
MHA completed the acquisition of BTSEE in August 2025 for total consideration of €5.88 million. Notably, there is a recognised gain on bargain purchase of £5.451 million, because equity compensation granted to vendor fee earners is treated as deemed remuneration rather than part of the purchase price. That gain is recorded within non-underlying items.
Why it matters: BTSEE brings depth in Cyprus, Greece, Romania, Bulgaria and Moldova, complementing the UK, Ireland and Cayman footprint. Integration is progressing – systems and governance alignment underway, and early cross-border collaboration reported. The strategic logic is clear: more international reach for clients that need consistent audit, tax and advisory coverage across jurisdictions.
Tech, AI and data: plumbing first, productivity next
The FY26 technology and data programme is on track. MHA is expanding adoption of automation in Personal and Corporation Tax and piloting tools such as ChatGPT Enterprise and Microsoft Copilot in day-to-day workflows. The focus is sensible: strengthen data foundations across finance, HR and client records to improve forecasting and profitability analysis, then scale the clever bits.
For investors, the upside is operating leverage – doing more with the same people – and higher quality of delivery. The group is taking a measured approach on cost, security and compliance, which is exactly what regulators and clients will expect.
Dividend, outlook and what to watch in H2
The Board has declared a 1.0p interim dividend, payable on 29 December 2025 (ex-date 27 November; record date 28 November). With around 87% recurring revenue and sector diversity, guidance is steady: trading is in line with market expectations for FY26 of £249.5 million revenue and £44 million adjusted EBITDA.
Management also flags a supportive market backdrop. Regulatory scrutiny continues to rise, and many mid-market and larger companies are reassessing long-standing adviser relationships. That tends to favour firms with scale, sector expertise and international reach – three boxes MHA is aiming to tick decisively.
My take: positives and pressure points
- Positives: double-digit revenue growth; resilient 18% margin; strong cash generation; 87% recurring revenue; clear international strategy; technology programme aimed at real productivity gains; confidence maintained against FY26 expectations.
- Pressure points: lock-up stretched to 88 days; integration execution for BTSEE must stay on track; sector pockets of softness (Automotive & Transport, Healthcare); continued need to win tenders while holding price in a competitive market.
Jargon buster (quick and useful)
- Adjusted EBITDA: earnings before interest, tax, depreciation and amortisation, excluding one-off items like listing costs and bargain purchase gains. A cleaner view of underlying profit.
- Recurring revenue: fees that repeat annually (for example, audit, tax compliance), providing visibility.
- Lock-up days: the average number of days cash is tied up in work-in-progress and receivables. Lower is better.
- Bargain purchase: when net assets acquired exceed the price paid. It creates a one-off accounting gain and is excluded from adjusted metrics.
Bottom line
MHA’s first-half delivery shows a growing, well-diversified professional services platform with disciplined margins and a strengthening international footprint. The interim dividend and net cash position underline financial headroom for continued investment and selective M&A. If integration stays smooth and lock-up inches back down, the set-up for H2 looks favourable.
For retail investors, the simple read is this: strong organic growth, sticky revenues, and tangible progress on tech and international expansion. The shares will ultimately be driven by converting today’s tender pipeline into wins at attractive margins – and on that front, management sounds confident.
