MHA plc Achieves 12% Revenue Increase to £251.3m in First Full Year as a Public Company

Robust Financial Growth Across All Service Lines in FY26

MHA achieved significant financial growth in its inaugural full year as a public company, with group revenue reaching £251.3m, a 12% increase from £224.1m the previous year. The revenue growth comprised £14.3m net organic growth—£13.2m from fee increases on existing clients and £15.9m from new clients, offset by £14.8m from completed projects and lost clients—and £13.2m from acquisitions. Baker Tilly Ireland contributed £1.5m from its July 2024 acquisition, while Baker Tilly South-East Europe added £11.4m following its August 2025 acquisition. This reflects MHA’s disciplined strategy of combining organic expansion with targeted acquisitions to enhance scale and geographic reach.

All four service lines posted growth: Audit and Assurance, the largest segment at 50% of revenue, rose 9% to £124.5m from £113.9m; Tax increased 13% to £46.3m; Advisory services grew 15% to £70.8m; and Wealth Management surged 20% to £9.7m. This diversified performance underscores the resilience of MHA’s business model and its ability to meet demand across multiple professional disciplines. Recurring revenue remained steady at about 87% of total revenue, highlighting strong client retention and defensive business characteristics.

Adjusted EBITDA Growth and Enhanced Cash Flow

Adjusted EBITDA, the key metric for comparing FY26 to FY25 after the transition from partnership to plc, rose 13% to £46.5m from £41.2m, with the margin improving slightly to 18.5% from 18.4%. This indicates operational leverage despite higher overheads linked to AIM listing. Adjusted profit before tax increased 11% to £39.2m from £35.3m, reflecting strong operations and cost discipline. These results align with previously upgraded market guidance.

Cash generation was a standout, with adjusted operating cash conversion at 115%, up from 89% the prior year, demonstrating excellent working capital and collections management. Net cash strengthened to £25.4m as of 31 March 2026, up from £17.7m, despite funding two acquisitions. Working capital lock-up rose modestly to 76 days from 71 days, reflecting integration and normal billing cycles. This strong cash position supports further acquisitions and a progressive dividend policy.

Strategic Geographic Expansion via Acquisitions in South-East Europe and Middle East

Since its IPO, MHA has pursued a disciplined acquisition strategy, completing two key deals that expand its international presence. In August 2025, it acquired Baker Tilly South-East Europe (BTSEE), operating in Cyprus, Greece, Romania, Bulgaria, and Moldova, contributing £11.4m revenue in FY26 and strengthening MHA’s footprint in a strategic region. In April 2026, it acquired Moore Stephens UAE (MS UAE), establishing a Middle East presence. Both acquisitions are expected to be earnings accretive within 12 months, reflecting confidence in integration and synergy realization.

These acquisitions mark significant progress in MHA’s international growth, with CEO Rakesh Shaunak noting the extended footprint and enhanced market position. BTSEE notably boosted fee growth in Financial Services (22% total, 11% organic) and Professional Services (23% total, 12% organic), sectors weighted in BTSEE’s financial and banking client base. BTSEE also added public company clients, supporting a 16% increase in fees from listed clients, where MHA achieved 15% organic growth. Management reports a strong pipeline of acquisition opportunities domestically and internationally, signaling ongoing selective expansion.

Expansion of Public Company Client Base and Sector Growth Drivers

MHA successfully grew its UK listed client base, with fees from capital markets clients up 16% in FY26, comprising 15% organic growth and new clients from the BTSEE acquisition. This is significant amid UK audit market shifts: Financial Reporting Council data shows non-Big Four firms increased their share of public interest entity audits from 22% in 2020 to 40% in 2024, with the Big Four’s share declining. As a leading mid-tier firm, MHA is well positioned to benefit.

Sector performance was strong across core areas: Financial Services fees rose 22% total (11% organic) to £33.9m; Professional Services fees grew 23% total (12% organic) to £23.7m; Manufacturing and Engineering increased 16% total (11% organic) to £23.7m. Real Estate and Construction (£29.3m, 10% growth), Retail, Consumer and Hospitality (£28.0m, 7% growth), and Technology (£19.1m, 12% growth) also showed solid gains. MHA’s sector-focused strategy, leveraging partner and staff expertise, has been a key revenue growth driver over the past decade, differentiating the firm in the market.

Delivering on IPO Commitments in First Full Public Year

This marks MHA’s first full financial year post-AIM admission in April 2025, with results confirming delivery against IPO strategic goals. Chairman Geoff Barnes highlighted the deliberate choice of IPO over private equity to maintain partner control and focus on long-term stakeholder benefit. The results validate this approach, balancing partner-led culture with financial and strategic targets.

The transition to public company status was smooth, absorbing IPO costs while sustaining organic growth and acquisitions. Investments in technology, including AI adoption, are viewed as enhancing client service, productivity, and competitive positioning. CEO Rakesh Shaunak emphasized that public status enables share incentives and career paths more attractive than private equity-backed firms. The establishment of an Employee Benefit Trust reflects inclusive employee participation.

Structural Growth Supported by Regulatory Complexity and Multi-Service Demand

MHA operates amid enduring structural growth drivers, including rising regulatory complexity and increasing demand for multi-service, cross-border advisory. The expanding UK audit and accounting market, driven by regulatory reforms, creates opportunities for mid-tier firms. With approximately 87% recurring revenue tied to compliance and regulation, MHA benefits from a stable, predictable revenue base less affected by economic cycles.

The board’s medium-term goal to exceed £500 million in annual revenue requires roughly doubling FY26’s £251.3m, implying a 14-15% compound annual growth rate over three to four years. Management’s confidence rests on three pillars: the ongoing shift of audit market share from Big Four to mid-tier firms; MHA’s broad platform serving multi-disciplinary and cross-border needs via Baker Tilly International’s global network; and proven ability to execute earnings-accretive acquisitions enhancing scale, geography, and sector expertise.

Dividend Policy and Capital Allocation Strategy

MHA declared a final dividend of 2.2p per share for FY26, totaling 5.2p for the year including interim payments. This is the first full year of dividends as a public company, reflecting a progressive dividend policy balanced with capital flexibility. The final dividend is subject to approval at the AGM on 21 August 2026, with payment on 25 September 2026 (ex-dividend 27 August, record 28 August). The policy aligns with IPO commitments, balancing shareholder returns and capital retention.

With basic and diluted EPS of 11.1p (no prior year comparable), the payout ratio is approximately 47%, conservative enough to allow dividend growth alongside earnings expansion. The strong net cash of £25.4m and 115% adjusted cash conversion indicate ample operating cash flow to support operations, dividends, further acquisitions, and strategic investments. Capital allocation balances shareholder returns with investments in systems, technology, talent, and selective acquisitions to enhance capabilities.

Technology and AI Investments Strengthen Platform

MHA has prioritized technology, systems, and analytics investments since IPO. The CEO stated that AI and data are increasingly embedded across the group, improving the depth, quality, and insight of client work by enabling teams to analyze larger, complex datasets faster and deliver sharper, consistent advice. This positions MHA as a competitive adviser to sophisticated clients.

The firm adopts a measured, rigorous approach to AI, ensuring quality and accuracy meet client expectations. Management views AI tools as complementary to expert human judgment, allowing specialists to focus more on high-value advisory work. This strategy supports staff retention and culture while scaling operations.

Positive FY27 Start and Board Confidence in Medium-Term Growth

MHA has started FY27 with strong momentum. The board notes the company enters the year with a broader platform, a robust pipeline, and sustained demand for high-quality professional advice. Successful integration of BTSEE and MS UAE acquisitions, both expected to be earnings accretive, supports this outlook. Structural demand drivers remain firm, with no material market deterioration anticipated.

The board remains confident in achieving medium-term ambitions of annual revenues exceeding £500 million through organic growth across service lines, UK and international acquisitions, and continued investment in technology, AI, talent, and sector specialization. A healthy acquisition pipeline provides additional growth optionality. Investors should note forward-looking statements reflect management expectations, not guarantees.