Study reveals optimism among professional investors for the UK to make good progress

New research from investment holding company MBH Corporation reveals 54% of professional investors from the UK, US and Germany believe Brexit, and the need therefore for the UK to secure new trade deals and support businesses, will make the overall business environment in the country more attractive over the next three years.  Only one in five (22%) expect it to deteriorate.

Some 54% of the professional investors interviewed, who collectively manage over $300bn, believe that the projected strong economic growth for the UK economy, and the increased desire for trade from countries from around the world as they come out of the coronavirus crisis, will help to accelerate trade deals for the UK.  This helps explain why 55% of professional investors expect the UK to make good progress in terms of securing new trade deals around the world over the next 12 months, and this rises to 65% when looking at the next three years.

However, in five years’ time, 50% of the professional investors interviewed believe Brexit will have had a negative impact on the UK economy overall, compared to 37% who believe it will have had a positive influence.

Callum Laing, CEO MBH Corporation plc, said: “Our research shows a clear level of overall optimism for new trade deals for the UK, and an improving business environment.  Micro caps and small businesses are often the first to benefit from any uptick in economic activity following a downturn, which is what we are seeing now as the world recovers from the worst effects of the Coronavirus crisis. Many of our portfolio companies are enjoying strong growth.”

MBH Corporation plc, is a diversified investment holding company listed in the US and Germany, which acquires successful small businesses, says micro caps and small caps can be among the best performers as economies recover from a downturn.

MBH recently posted a significant 81% growth in revenue for the first half of 2021 (ending 30 June 2021.  Furthermore, earnings before interest and taxes (“EBIT”) increased by 271% to £3.0m.  More than 60% of the revenue and 90% of the EBIT of the Group occurred from April onwards.

MBH currently has 25 successful and profitable small businesses across multiple geographies and industries, and 20 of these are based in the UK.

MBH will continue its highly focused growth of well-established profitable small businesses across multiple geographies and industries. It targets companies carrying little to no debt, delivering around US$1m – US$10m EBITDA and are generally still run by their founders who become co-owners of MBH.

By leveraging its unique Agglomeration™ strategy, MBH can create substantial shareholder value through the consistent and accretive acquisition of excellent companies.  With Agglomeration™, profitable companies convert their private shares into public shares or bonds in MBH Corporation plc in a perpetual earn-in model. Company owners are then incentivised to accelerate their growth trajectory using the resources of the plc including expertise, skill transfer of best-in-class practices, cross-selling to other Group companies and where appropriate, zero cost funding for new growth projects.

Each Group company retains its autonomy and follows appropriate corporate and financial governance.  Business owners are also incentivised financially to enhance shareholder value through a share bonus scheme aligning their interests with public shareholders.