TMH reports $3.7m profit for H1 FY23 off back of acquisitions and loan write downs
The Market Herald (TMH) has reported revenue of $33.7 million in the six months to December 31, representing a 163% increase from the prior corresponding period.
The jump in revenue follows the acquisition of classified businesses Gumtree, Carsguide from Adevinta Oak Holdings B. V. for total USD$60.9 million. TMH reported a net profit before tax of $3.7 million for the half-year.
CEO Tommy Logtenberg commented: “We have initiated a strategic review of the Perth business units to reduce losses and improve performance levels by streamlining operations with Canada. This detailed assessment will ensure the group can deliver superior shareholder returns by implementing a new simplified structure to optimise revenue growth initiatives, focus on cash management and discontinue funding of any underperforming and loss making activities.”
Following a rights-issue the company has repaid $15 million on an outstanding loan to Adevinta Oak Holdings B.V, and is “well on track” with the refinancing, and is in discussions with various lenders (national and international).
“Over the last years the GCA business strongly focused on sustainable growth with sound profitability delivering healthy cash returns. In the coming months the new TMH management team will be rolling out these programs across the rest of the TMH Group,” stated the financial report.
The group has also received a 174% increase in net cashflow from operating activities to report a net cash inflow from operating activities of $6.8 million for the half-year ended 31 December 2022.
TMH Group has engaged Gresham Advisory Partners as a strategic adviser to provide advice to the Board on strategies to maximise the “value of the group and capitalise on existing growth opportunities”.
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Olivia Kruimel was the managing editor at Mumbrella. She has more than 15 years of experience in journalism, communications and marketing. Her journalism career began at Fairfax Media (now part of Nine) and includes various B2B publications such as B&T, Travel Today and ALB. As a marketer Olivia has worked for Standard Chartered and various global law firms.
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