HH Global results continue upward trend
Thursday, September 19, 2019
HH Global has announced another big jump in sales – and EBITDA margins – in its Q1 results.
The group’s unaudited results for the three months to 30 June show sales up 21.6% to £106.7m, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) jumped by 55.3% to £6.2m, giving an EBITDA margin of 5.8% (2018: 4.5%).
HH Global said that new business for its outsourced marketing services, alongside renewals and the expansion of existing customer relationships, would bring in more than £50m of sales on an annualised basis, including a new “full scope” relationship with a global FMCG company.
Chief executive Robert MacMillan said he was pleased with the results. “As our business has scaled we have invested in a big central infrastructure cost, which we needed to support 44 markets.
“Once you get past a certain tipping point the central costs don’t increase proportionally and the difference drops through. This was a plan I had about 17 years ago – you have to keep going with these things.”
He said business wins were coming “from all regions”. The Leatherhead-headquartered firm won the Asda point-of-sale contract here in the UK in May and was also awarded the print and mail work for the coming Census in 2021.
It has also taken on 270 new staff, taking the total to 1,300 worldwide.
“We are happy to take on new people. We have won some other big contracts that I can’t yet announce, and we are gearing up for that business,” MacMillan added.
The group has improved its EcoVadis Gold sustainability accreditation to 66 points, putting it into “the top 5% of companies globally”, with MacMillan citing sustainability as a major topic for large corporate clients.
The firm's clients include Google, HSBC, Pepsico, Procter & Gamble and Samsung.
“A key part of our message is that we can do things very sustainably in this industry. We are doing some really good stuff around sustainability linked with innovation.” he explained.
MacMillan said data marketing business Blueberry Wave, in which HH has acquired a majority stake, was “going really well”.
“Clients told us they wanted that type of service so we have a warm audience to talk to. We’re embedded with marketing teams so we know what’s happening and can see where we can help,” he said.
MacMillan also praised the firm’s suppliers. “Sometimes we can talk ourselves down in this country. I think we should be more positive. We work with fantastic suppliers who do a brilliant job for us.”
He was upbeat about business prospects. “I think our competitors are challenged for a number of reasons. If there’s a global opportunity we are now positioned as the number one choice, and I think that’s reflected in our performance.
“We’re now into our busiest part of the year and we’re very positive about the immediate future, and beyond.”
HH Global posted record results in its most recent financial year, with sales nearing £400m. Group chief financial officer Edward Parsons said he could see revenue and EBITDA growth momentum “continuing into the foreseeable future”.