The split behind the headline

MHA (LSE:MHA) said in a trading update on 30 October 2026 that Revenue for the six months to 30 September rose 11% to £134.6m. Of that increase, about four percentage points came from organic growth and seven from acquisitions. With a detailed report a week away, the composition of growth is the clearest indicator of how the underlying practice is performing.

About the firm

MHA provides audit and assurance, tax, accountancy and advisory services from 32 offices in the UK, Ireland, South-East Europe, the United Arab Emirates and the Cayman Islands. It floated on AIM in 2025 and employs more than 2,300 people, including 157 partners. A high proportion of revenue, about 87%, is recurring, which reflects the repeat nature of audit, tax and compliance work.

A UK accountancy firm with a widening footprint

LSE:MHA, which floated on AIM in 2025, provides audit and assurance, tax, accountancy and advisory services. It describes itself as having more than 2,300 employees, 157 partners and 32 offices across the UK, Ireland, South-East Europe, the United Arab Emirates and the Cayman Islands. Much of that international reach is relatively recent. The Acquisition known as MS UAE completed in April 2026, and in September the group settled its completion accounts with about AED1.2m in cash and 160,073 new shares, which are subject to lock-in and clawback arrangements.

How growth has shifted

The contrast with the previous financial year is quite notable. In the year to 31 March 2026, revenue rose 12% to £251.3m, with organic growth of 6.4% and acquisitions adding 5.8%. Adjusted EBITDA increased 13% to £46.5m, a Margin of 18.5%, and net cash was £25.4m. In the latest half, total growth was similar but organic expansion slowed to about 4%, while acquired revenue did more of the work. Put simply, acquisitions accounted for close to two-thirds of the half's increase.

The company said Demand for audit, assurance and advisory work remained resilient, with financial services and real estate clients showing double-digit growth, and that about 87% of revenue was recurring.

What the full-year expectations imply

LSE:MHA said it was on track to meet market expectations of £275.9m revenue and £50.8m adjusted EBITDA for the year to March 2027. That requires about £141.3m of revenue in the second half, against roughly £130m in the equivalent period a year earlier, implying second-half growth near 9%. The EBITDA figure equates to a margin of about 18.4%, broadly level with last year. Those calculations rest on rounded figures and are indicative only. The acquired contribution may also fade through the second half as earlier deals annualise, unless further acquisitions are added.

For investors, the mix matters because organic growth is the better guide to client demand and pricing, while acquired revenue depends on deal flow, integration and the price paid.

Risks and dependencies

Integration across new jurisdictions brings regulatory, cultural and management complexity, and partner retention is central in a people-based business. Share-based deal consideration enlarges the share count, and lock-in arrangements will eventually expire. Advisory income can weaken quickly if transaction activity slows, even when audit and compliance work is steadier. Wage Inflation and recruitment of qualified staff remain pressures on margins across the profession. Audit regulation is a further consideration, since adverse quality reviews or professional Liability claims could affect the firm's reputation and client retention.

The arithmetic of growth

Revenue of £134.6m, up 11%, implies prior-year revenue of about £121.3m, an increase of about £13.3m. Organic growth of about four points would account for about £4.9m, and acquisitions of about seven points for about £8.5m. That means roughly 64% of the increase came from acquisitions. In the full year to 31 March 2026, the split was 6.4% organic and 5.8% acquired, so acquisitions made up about 48% of that year's 12% increase.

The slowdown in the organic rate, from 6.4% to about 4%, is a decline of about 2.4 percentage points.

Full-year expectations

Expectations of £275.9m revenue for the year to March 2027 compare with £251.3m in the year to March 2026, which is a rise of about 9.8%. For adjusted EBITDA, £50.8m compares with £46.5m, a rise of about 9.2%. The first half contributed £134.6m, so the second half has to deliver about £141.3m. The group's seasonal pattern appears to put more revenue in the second half, as the earlier year's second half was about £130m against a first half of about £121m.

The international acquisitions

The MS UAE acquisition completed in April 2026 and the settlement of its completion accounts in September involved about AED1.2m in cash and 160,073 new shares. The shares are subject to lock-in and clawback arrangements, which means the sellers cannot sell them for a period and may have to return them if conditions are not met. Using shares as part of payment keeps the sellers invested in the group, aligning their interests with it.

Demand by client group

Financial services and real estate clients showed double-digit growth, and audit, assurance and advisory work was described as resilient. These sectors are significant for an accountancy practice because regulation and transactions create steady demand for assurance and advisory services. The company's net cash of £25.4m at 31 March 2026 gives it capacity to continue making acquisitions without borrowing.

Partner structure

An accountancy group depends on its partners to win and retain clients. With 157 partners across 32 offices, the group has a broad base, and acquisitions add further partners and staff. The integration of acquired firms, and the retention of their clients, determines how much of the acquired revenue continues in later years. Because partners often hold shares, their interests are tied to the group's results.

What the 19 November results should clarify

The interim results should provide the organic growth figure by service line and region, the first-half EBITDA margin, net cash after acquisition payments and any update on the pipeline of further deals. They will also show whether the slowdown in organic growth from 6.4% to about 4% reflects timing or a softer underlying market. Investors will also look for the interim dividend; the group paid a total of 5.2p for the last financial year, including a proposed final of 2.2p.