MHM Automation Limited (NZX: MHM) Interim Report for the 6 Months to 31 December 2020

Thursday 18th February 2021

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MHM Automation Limited (MHM) increases profitability in half year to 31 December 2020

Highlights of the six-month period to 31 December 2020:

• Total Operating Revenue of $24.7m

• Operating EBITDA of $1.46m, a 63% increase on the prior period

• Continuing Operations Net Surplus after tax $469k vs $255k for the prior period

• All Operations Net Profit after tax $372k

• Net Debt of $1.2m as at 31 December 2020

• During the period the New Plymouth building was sold for $3.95m. Settlement occurred after balance date. The gain on disposal will be reported in the results to 30 June 2021.

Outlook

We are confident that the financial year to 30 June 2021 will see increased operational profitability from the prior year. The Milmeq product set has strong workflows and is now taking orders for delivery in the back half of 2022. The H&C automated solutions have seen increasing demand and have a strong pipeline of more orders which we expect to convert in the short term. The stainless fabrication business has recently secured a number of large contracts that see those operations largely committed for the financial year.

Longer term we are focused on delivering a sustainable growth strategy that is focused on technology and automation. We are still building the platform to grow and increase profitability, with the focus on:

1. The one group process, bringing all of our product brands under the MHM Automation umbrella, including a new cloud based ERP and operating structure. This is vitally important to allow us to have a platform from which to increase margins and be an enabler of growth

2. Building our growth strategy in the global markets, based off our core IP in vision systems, automation, machine learning and data analytics, in conjunction with our trusted customer relationships. This growth strategy will be a mix of new markets, new products and the cross selling of capability across the MHM customer base

3. Continuing to invest in product development, innovation and R&D.

Please see the links below for details:

MHM Interim Report for the 6 months to 31 December 2020

NZX Appendix 2

MHM Interim Results Announcement for the 6 months to 31 December 2020

Source: MHM Automation Limited

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