Half-year Report

HML HOLDINGS Plc

("HML")

HALF YEAR RESULTS

HML Holdings Plc (AIM: HMLH), the property management services group, today announces its interim results for the six months to 30 September 2018.

Highlights for the six-month period:

· Revenue up 7% to £13.6 million (2017: £12.7 million)

· 11% increase in profit from operations before interest, amortisation, share based payment charges and taxation to £1.12 million (2017: £1.01 million)

· Cash generated from operations was £1.56 million (2017: £1.04 million)

· Adjusted earnings per share 2.2p (2017: 1.9p). Adjusted earnings are calculated before interest, amortisation and share based payment charges.

· Net debt reduced to £0.96 million (2017: £1.47 million)

Commenting on the results, Robert Plumb, Chief Executive Officer of HML Holdings Plc said:

"This is an encouraging set of results for the first half of the year, especially when considered against the backdrop of an uncertain UK property market. To have recorded record half year earnings while we implement significant operational changes demonstrates that we are moving in the right direction as we create a property management services group fit to meet the challenges of the future."

For further information:

HML Holdings Plc Tel: 020 8439 8529

Robert Plumb, Chief Executive Officer

James Howgego, Chief Financial Officer

Tavistock Communications Limited Tel: 020 7920 3150

Jeremy Carey

James Verstringhe

FinnCap Tel: 020 7220 0500

Ed Frisby/Giles Rolls - Corporate Finance

Camille Gochez - Corporate Broking

REVIEW OF BUSINESS

We are pleased to report earnings before interest, share based payments, amortisation and tax of £1.12m (2017: £1.01m) representing a 11% increase on the first 6 months of last year. Operating margins before and after taking into consideration central overhead costs improved to 13.0% (2017: 12.6%) and 8.3% (2017: 7.9%) respectively.

The growth in revenues and earnings is almost entirely organic as the Group has made no material acquisitions since 1 April 2017. In most areas our revenues remain resilient despite the uncertainty surrounding investment in the property sector. Most notably we recorded a strong improvement in health and safety inspections fee income which, to some extent, offset the fall in pre-contract enquiry fees on property sales. Although this latter transaction type represents only 3.5% of income the reduction in activity clearly impacted what would have been a very strong overall improvement in like for like revenues.

During the first half of the year, management continued to implement the planned reorganisation of segments of client processing to our back office in West Croydon and we are pleased to report that these changes, which will have a long term positive impact on efficiency and cost, are continuing to take place without a material impact on our levels of service provision. In the second half of the year we look forward to implementing the streamlining of our systems onto one database platform. This will create further efficiencies by allowing our divisions and offices to access and process transactions on one system.

We continue to enjoy steady and improving volumes of new business with a marginal shift towards tendering for larger blocks and housing estates. Competition particularly from the smaller unregulated players who price keenly in the smaller block market remains strong. The growing awareness of the impending regulation of agents, now more frequently reviewed in the property press, continues to bring sellers to the market. HML remains confident in its ability to carefully select and integrate those businesses that are compatible with our service strategy. From a steady foundation in the first half of the year, we look forward to being able to update you on further improvements in the second half of the year.

Robert Plumb

Chief Executive Officer

26 November 2018

HML HOLDINGS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

HML HOLDINGS PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

COMPANY NUMBER: 5728008

HML HOLDINGS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

HML HOLDINGS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

HML HOLDINGS PLC

NOTES TO THE ACCOUNTS

1. General Information

The interim unaudited financial information was approved by the board on 26 November 2018.

The results for the year ended 31 March 2018 have been audited whilst the results for the six months ended 30 September 2017 and 30 September 2018 are unaudited. The financial information contained in this interim report does not constitute statutory accounts for the year ended 31 March 2018. The statutory accounts for that year, which were prepared under International Financial Reporting Standards ('IFRS'), have been delivered to the Registrar of Companies. The auditor's opinion on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.

Copies of the interim report are available from www.hmlgroup.com or from the Company Secretary at HML Holdings plc, 9-11 The Quadrant, Richmond, Surrey, TW9 1BP.

2. International Financial Reporting Standards

The consolidated financial information has been prepared using accounting policies consistent with IFRS as adopted by the European Union.

The accounting policies applied are consistent with those expected to apply for the year ended 31 March 2019. IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers have been applied for the first time in preparing the interim financial information. The Directors consider that the application of these standards has not had a material impact on the recognition and measurement of items in the interim financial information.

Whilst the financial figures included in this interim report have been computed in accordance with IFRS, this interim report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.

3. Taxation

Taxation for the six months to 30 September 2018 is based on the effective rate of taxation of 19% which is estimated to apply for the year ending 31 March 2019.