PHD Industrial Holdings enjoys profit growth despite economic challenges

PHD team Peter Horton Richard Blackburn Craig Richardson James Dow Andy Dodd Philip Price

Investment group PHD Industrial Holdings has enjoyed a 11% increase in revenue for the financial year ending 30 September 2023, despite the challenging economy.

The as yet unaudited and unpublished numbers will also likely reveal EBITDA and before other exceptional items of £6.2m (£5.789m last year).

The group, which operates six main trading businesses and follows the corporate compounder model, has achieved total sales across its portfolio of diverse businesses to over £63 million and expects to see a similar uplift in profit before tax once its year-end accounts are finalised early in 2024.

PHD invests in mature and profitable SMEs in traditional industrial sectors and works with management to support their growth and is aligned with the listed advisory business DSW.

Andy Dodd, Director at PHD Industrial Holdings, attributed the success to the strong leadership and resilience of the management teams across the Group. He said: “Despite the increasingly difficult trading conditions in the UK and globally our management teams have demonstrated both their experience and strength of character in keeping their businesses moving forward. This is against the back drop of the economy adjusting to higher inflation and interest rates.

“We have a solid foundation for future growth and will continue to pursue our strategy of organic and acquisitive expansion in our core markets.”

Across all the companies PHD employs over 350 people including Wigan-based sealants and adhesives specialist Hylomar; Lancashire hardware specialist Olympic Fixings; Goole-based chemical manufacturer Technikraft; Wiltshire based castors wheels and materials handling equipment manufacturer BIL Group; and Auto Marine Cables and First Class Holidays, both based in Manchester.

Andy Dodd said the results also demonstrated the benefits of the corporate compounder model compared to traditional private equity firms. “Our model enables us to hold businesses, reinvest cashflows and benefit from compound growth, rather than having to sell them on every few years. Therefore our model is also more ‘founder friendly’ and a better way to support the type of traditional SMEs that are often the bedrock of the economy.”