HH Global posts record financial results

By Max Goldbart, Monday 27 February 2017

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HH Global has posted what it claims to be the best quarterly results in its 25-year history.

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MacMillan: "My view is that I've got the best management team in the industry"

For the quarter ending 31 December 2016 (Q3), revenue was up for the UK-headquartered outfit by more than 40% (42.7%) compared with the previous quarter, from £57.5m to £82m. Year-to-date revenue was £214.6m, a 40.5% increase on the prior year period of £152.8m. 

In last year's annual results, sales for the print management and creative production company topped £200m for the first time. 

HH Global chief executive Robert MacMillan said: “I’m delighted. My view is that I’ve got the best management team in the industry. We’ve taken the best people from the competition combined with what was already a strong team.

“I think the rest of the market is either currently owned by large manufacturing or large corporate groups; many are either for sale or consolidating and we are the only major independent out there.”

Revenue across all of HH Global's operating regions increased from the previous quarter, rising by 42.8%, 41.4% and 46.6% in EMEA, the Americas and Asia Pacific respectively.

Gross profit was £18.9m, which comprises 23% of gross revenue in the quarter, a 63.3% increase on the same quarter last year. Year-to-date gross profit was £46.6m, an increase of 58.1% compared to the previous year.

Non-GAAP adjusted EBITDA was £4.3m, a 44.5% growth increase on the same quarter in the previous year (£2.9m). Year-to-date non-GAAP adjusted EBITDA was £9.2m, representing a 48.8% increase on last year’s figure (£6.2m).

MacMillan, who has been chief executive for 14 years, put a lot of the growth down to HH picking up eight major contract wins in the last six months. New client wins include a global biotechnology company, a US-based retailer, a US-based global beverage company and an FMCG company in India.

“The positive for me is that all three regions are profitable,” added MacMillan.

“They’re all growing, which is unique in our marketplace. We’ve got the footprint, got the breadth of the business, and now we’re demonstrating with that underlying footprint that we are able to substantially grow.”

In response to expansion in Latin and South America, HH Global opened up new entities during the period in four different countries, Costa Rica, Guatemala, El Salvador and Honduras.

The group also introduced a new business analytics module to its HHub technology platform.

This is the first time HH Global has published quarterly results, which MacMillan said would become a “mechanism for comparison to see how we are performing”.

“The challenge is that we don’t have millions of pounds to spend on marketing so what we’re going to do is put our numbers out there as a means to drive interest in the business, particularly in North America and Asia where the business isn’t as well known,” he added.

HH Global employs around 750 staff globally with around 200 in the US and the majority in the EMEA. In the UK it has around eight client-based sites and two production sites: its headquarters in Sutton and a 650sqm design studio in Wakefield.

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