HML Holdings completes acquisition of Holborn-based property manager

AIM-listed property manager HML Holdings has completed the acquisition of Holborn-based Faraday Property Management for up to £2.7m.

The £2.7m was paid in cash, which offset against £500,000 of free cash in Faraday, funded from existing cash resources, as well as the issue of £100,000 worth of HML shares.

HML issued 326,439 new shares of 1.5p each at a price of 40p, the average closing mid-market price five days prior to completion.

The new shares will be admitted to trade on AIM on 7 April and following admission, HML will have 45.08m shares in issue with voting rights and none held in treasury.

The deal includes additional performance related payments of £600,000, subject to Faraday achieving certain criteria and will be payable over 24 months from the acquisition date.

Faraday, like HML, focuses on local private residential properties and manages over 4,000 residential units in 72 estates and blocks of flats, generating annual revenue of £1.9m and normalised pre-tax earnings of £400,000.

Faraday is expected to be immediately earnings enhancing and its board and senior management team will remain with the business which will continue to operate from Holborn.

Shares in HML Holdings were down 1.63% to 39.35p at 0838 BST.