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Started: EquityDevelopmen, 21 May 2024 08:20
Last post: ftseexplorer, 4 Jun 2024 14:30
Plenty of reasons why this share is not more fairly valued but mine remains that the city don't understand this company and what it is trying to achieve.
I'm not a believer but am a holder as the yield is OK and so something will happen....eventually.
At least they are no longer watering down my % to line staff pockets as that did grate
I thought a strong rally yesterday would have been a formality. Added more today.
Must be a take-over target at this silly price.
Takeovers every day on the LSE as stocks are lowly rated.
Link to research here: https://www.equitydevelopment.co.uk/research/update-extends-long-record-of-growth
A positive FY24 update reiterates the inherent reliability of its business. Both revenues (up 12% at c £136m) and EBITDA are expected to come in ahead of market expectations, adj. PBT in line. The latter reflects relatively subdued corporate finance M&A volumes and expenses related to investment in its teams and IT support.
According to the update both divisions grew materially y-o-y on the back of acquisitions and organic growth. Business recovery and advisory was c 7% up, property advisory and transactional services by c 25%. The latter saw all its core disciplines - valuation, asset sales and consultancy - pick up pace. The c 13% expected revenue growth by business recovery reflects higher activity levels across all case sizes and that operation is well placed to capitalise on market growth.
The four acquisitions completed in FY24 added c £5m to FY24 revenues (£9m+ pa on an ongoing, pro-forma basis), and built insolvency and property advisory operational capacity and geographical profile. Their integration is progressing well and all trade in line with expectations.
We expect more acquisition led and organic growth which has driven the last 3 years, with BEG to add capacity, geographical reach, and market share in its core disciplines. The rating of BEG shares appears to have lagged events and we retain our 175p/share fair value.
Started: mick-b, 21 May 2024 07:24
Last post: mick-b, 21 May 2024 08:10
🔺 3%
in a sea of red.
"with EBITDA ahead of market expectations and net debt lower than anticipated."
promising....
BEGB is at a 2 year low actually, but it's difficult to see why.Almost worth owning just as an income stock alone.
FRP beat expectations this morning yet BEG is at 12m lows and trading on only 10x expected cash flow. Surely a gift at this level? I own both
Started: Casshy, 8 Apr 2024 09:39
Last post: Casshy, 8 Apr 2024 09:39
Ex Dividend Thursday so hold for Wednesday,!!!....nice...plus capital growth at these low prices
Started: EquityDevelopmen, 3 Apr 2024 09:35
Last post: Chelsea11, 3 Apr 2024 12:26
It would be a surprise to me, if BEG don’t communicate a further acquisition this quarter.
New research note out from Equity Dev reviewing the potential for BEG to push top line revenues towards c £200m pa in next 3-5 years and reaffirming their 175p/share fair value.
Free access to read note / hear summary at:
https://www.equitydevelopment.co.uk/research/strategic-growth-targeting-200m-revenues-by-fy27
Started: gawdhelpus, 28 Feb 2024 18:12
Last post: gawdhelpus, 28 Feb 2024 18:12
Same old story - rinse and repeat, rinse and repeat. Getting close to where I will throw my hand in.
Started: playtowin, 26 Feb 2024 08:36
Last post: Chelsea11, 27 Feb 2024 07:32
There’s the difference re view on strategy. I don’t find it puzzling at all. They are very clear via RNS in what they are doing and why and like I said, you either believe in that way forward, or you don’t. If you don’t and you’re not underwater, why remain invested here when there are so many alternatives.
I certainly wouldn't buy any more of them just yet. I couldn't make an argument for this being in my top 10 best ideas for small cap companies. That said, with this particular company I will not sell at a loss either - there is no need. I guess I'm saying it is a hold for now. I would add if the price breaks down further - which it might.
The buy and build strategy does not seem to focus on insolvencies, which is puzzling. If anything I suspect this is positioned to do well in a booming property market now.
Sorry to clarify I like buy and build. I work in it
My point for begbies atm is the market in insolvency is up atm. I wouldn’t do deal at the top of the market. This period should be of sufficient growth organically
Also larger admin are far better margin than high volume cvls. If begbies buys smaller insolvency firms you buy more low margin cvls
I’d rather focus on organic growth or acqihire at the bottom. Pick up scale when the market is less boyant
I also think constant dilution isn’t attractive for investors
Yes, opposing views on the company’s strategy is exactly what I'm clearly calling out. What anyone would remain invested in a company where they have stated they don’t agree with the strategy, is beyond me (unless underwater and not wanting to crystallise a loss). It’s like backing a racehorse you don’t believe has any chance of winning.
I guess we will all have our own thoughts on how we think we could do things differently.
But "In Line" will "Do Fine" is how I have always been accustomed to interpreting RNSs.
Last post: Chelsea11, 16 Feb 2024 10:05
Finished at £1.08 on 18th Jan. 52 week low was back in October.
We saw a low of 106 on the 18th Jan. Still looking weak but suspect it has found support.
Not down at £1.03 per your prediction as of now (Dartron). Per Results RNS (Dec), we are due a 3rd quarter Trading Update here before end of Feb.
Guess we have to wait any see if there’s anything in there that moves the SP towards your prediction, or further away.
What a sad day for BEG. This is what happens when you just keep issuing shares. People have to sell them to realise the cash they should have received. Look at my post 15th December, 103 looks on the cards. The EBT is less than the amount of shares issued recently.
...Begbies Traynor Group plc announces that it has today applied to the AIM market of the London Stock Exchange for a block listing of 949,141 ordinary 5 pence shares in the Group ("Ordinary Shares"). Admission is expected to occur on 29 December 2023.
... has on 12 January 2024 purchased 100,000 ordinary shares
Yes, buying like that is just what is needed. Without that buying I think it would have hit 103, bottom of channel.
I guess it depends how quickly they start, and how much they buy. I have a few buy backs, where they do it so gently that the price still falls. Though with everything else, I think that is now unlikely here.
Started: Chelsea11, 8 Nov 2023 07:57
Last post: Chelsea11, 12 Dec 2023 18:52
To save you the trouble Dartron, here’s what IC have to say about M&A activity:
“The three businesses acquired since the beginning of the financial year are trading in line with expectations and have increased the breadth of the group’s service offering while strengthening its existing regional presence. M&A aside, the group recorded a creditable 9 per cent organic revenue growth rate, achieved despite a quieter market for its advisory teams.
Management anticipates further growth in insolvency activity and a broadly consistent second half for financial advisory. Property advisory and transactional service volumes also provide cause for encouragement. The expanded “breadth” is also significant from an investment angle in that it acts as a bulwark against potential overexposure to any one business area.”
Clearly not a distraction in their view and in fact the exact opposite.
I think it is supposed to be behind a pay wall, but it can probably be circumvented. Why else would I need a subscription.
I am happy to paraphrase after reading, but very busy today. Same with the results video.
Try a Google search on a few of the key words from the link. Can’t be sure it will work but did for me.
Chelsea I followed the IC link, and it is behind a paywall for me.
In fact they are very much pro-acquisitions, if those here were to read it.
Started: piworld, 11 Dec 2023 14:23
Last post: piworld, 11 Dec 2023 14:23
Begbies Traynor Group Executive Chairman, Ric Traynor and Group Finance Director, Nick Taylor present half year results for the six months ended 31 October 2023, followed by Q&A.
Watch the video here: https://www.piworld.co.uk/company-videos/begbies-traynor-group-beg-half-year-results-presentation-december-23/
Or listen to the podcast here: https://piworld.podbean.com/e/begbies-traynor-group-beg-half-year-results-presentation-december-23/
Started: LesBoy, 11 Dec 2023 07:56
Last post: LesBoy, 11 Dec 2023 07:56
Commenting on the results, Ric Traynor, Executive Chairman of Begbies Traynor Group, said:
"I am pleased to report a strong financial performance in the first six months of the financial year. We have continued to execute our strategy to grow the business, reporting double digit revenue and profit growth. The group's financial performance in the first six months leaves the board confident of delivering current market expectations(4) for the full year, which will extend our strong financial track record of growth.
... the rest in the RNS
Started: EquityDevelopmen, 20 Nov 2023 08:02
Last post: Chelsea11, 21 Nov 2023 09:03
“The city once again has spoken”.
Well if it was speaking about the last 12 months, it would be saying BEG down 10% but FRP down 25%.
Can you not see how laughable your responses are?
Chelsea11 (aka Blinkered), Yawn. Sorry to disappoint you but I'm still here and still critical of elements of BEG strategy. The whole point of a discussion board is for users to voice opinion but you seem hell bent on preaching one mindset.
For the record, I have never said "little growth" but I have said that if BEG stuck to their core strengths of insolvencies we might see better sales and profitability. I am not an advocate of expensive acquisitions of surveyors with a narrow moat when it could be done organically for way less.
The city once again has spoken with a 5% decline in share price on an otherwise flat market today.
FRP last week said it expects to report revenue for the first half of 2024 of £58.7m, up 19% on the prior year (H1 2023: £49.4m), and underlying adjusted EBITDA of £15.5m, up 34% on the prior year (H1 2023: £11.6m).
Compare and contrast - I rest my case.
Yes indeed, there it is, the knockout blow to those here (or were here) who continually spouted the total nonsense of “little growth” and “acquisitions being a distraction” and when challenged, could provide no meaningful explanation when confronted with the facts.
“Revenue and adjusted operating profit expected to increase by c.13%, with a good mix of organic and acquired growth”
We all get it totally wrong sometimes I guess :-)
A positive H1 trading update ahead of interims due 11 Dec: says activity levels across the group are encouraging.
New research note from Equity Dev out, retaining 175p/share Fair Value, as you can read/hear below :
https://www.equitydevelopment.co.uk/research/update-anticipates-13-h1-revenue-growth
Last post: Dartron, 18 Oct 2023 13:49
(Alliance News) - Manolete Partners PLC on Wednesday said it is emerging soundly from the UK government's alleged "suppression of the insolvency sector" during the Covid-19 pandemic.
The London-based insolvency litigation financing firm said it is benefiting from the removal of insolvency protections the UK government set in place during the pandemic.
https://www.lse.co.uk/news/MANO/manolete-partners-hails-boost-on-removal-of-uk-insolvency-protections-bip0ryqjmkun8hv.html
Started: Chelsea11, 19 Sep 2023 16:07
Last post: Dartron, 5 Oct 2023 20:50
Well its been 2 weeks, guess its time to issue some more shares.
https://www.lse.co.uk/rns/BEG/additional-allotment-and-new-issue-dbounqcc21qig1b.html
Management need to do something to breed some life into the shares
Admins are rising and Begbies should benefit
What ever next? Underwater on said purchase like the rest of us mugs.
Its an outrage Darton. Having to buy own shares whatever next ? A huge increase in revenue would seem apporiate
Peter Wallqvist, Non-executive of the Company, has purchased 20,000 shares.
They give them out to all and sundry and this poor chap has to buy them. Knights looking good O.F.
Started: Alas_Smith, 19 Jul 2023 16:43
Last post: Dartron, 12 Sep 2023 11:37
The FTSE all share AIM index is down 11% YTD, and down 16% on a 12 month basis.
I suspect the aim figure stated is the top 100 or something like that.
My source is google, just type in "aim index"
Do you not think the AIM performance figure stated, could possibly by skewed by outliers? It doesn’t mean that the vast majority of AIM shares are level pegging. Nor does it mean that some haven’t suffered more than others, without accompanying, solid rationale.
For the 3rd time, let formal RNS statements & financial results feed the debate.
YTD stats
Begbies Traynor -19.31%
FTSE 100 +0.25%
FTSE250 +0.32%
FTSE AIM -0.36%
And this is the only AIM share where the SP is in the doldrums for no very obvious reasons? I think not.
Like I said below, AGM Statement expected later this month and formal Results in Q4. Let’s let those feed the debate.
I think we can agree that this share is not exactly a city "darling". I'd even say it is disliked for whatever reason, when it should be flying in the current climate. I think myself and others have simply put forward reasons why this may be and "unblinkered" in so far as to not believe that all their acquisitions represent a good investment.
Started: bendipa1, 1 Sep 2023 19:58
Last post: ftseexplorer, 4 Sep 2023 17:10
I’ve covered this previously but I do think a factor weighing on this share is the constant issuing of new stock for incentive plans of directors.
Over the last 12 months 2.5m new shares have been issue which is the equivalent of of 1.6% on the issues stock.
Most other companies buy back stock to issue as share incentives, whereby the private investor isn’t affected.
I think you’ve answered your own question tbh. AIM stocks generally have taken a hit and this has rippled through BEG. Little to do with the performance of the individual company imo and a big mistake to crystallise a paper loss at this SP, as has been admitted to by one poster here.
It's very odd that this share is doing so poorly when they haven't put a foot wrong. Admittedly the div is measly at just over 3%, and they could afford to boost it by at least a third. Today they announced that FY results are expected to be ahead of expectations and the shares just sink further - over 3% today. What's even weirder is that there are examples I've noticed of several larger companies making losses and in deep debt. Yet the sp seems constantly firm even when those ones announce widening losses.
I've noticed most AIM stocks are right out of favour and have been ever since Covid, and that includes the few I know about that have been doing well. So it could just be that AIM stocks are now seen generally as something to avoid at all costs by most investors. I can still sell BEGB at a decent profit having bought in 2020 and 202. But that profit is dwindling fast.
Last post: Chelsea11, 30 Aug 2023 08:28
Notice of AGM expected in September (and on past form, a complimentary update on trading).
https://www.bournemouthecho.co.uk/news/23737237.begbies-traynor-shows-bournemouth-businesses-financial-distress/
Not a time to be throwing in the towel here imo.
Started: Alas_Smith, 27 Jul 2023 22:14
Last post: Dartron, 3 Aug 2023 23:31
Good posts, Alas. Thanks.
The message coming from Europe is in anticipation of banking defaults.
https://edition.cnn.com/2023/07/27/business/europe-banks-brace-for-loan-defaults/index.html
And while this is NOT at the domestic level, it has all the hallmarks to benefit BEG. And as tasteless, heartless and callous as this sounds, it SHOULD benefit shareholders in BEG.
A paper profit or loss has no merit until converted to cash. I have reduced my holding in NVDA, taken a full profit on UEM and sold my holdings in a few others at a loss. Am sitting on 15% cash after todays activity. Odd that it might seem, I feel that my exposure to European markets needs to be beefed up. I have chucked some cash at HEFT and am contemplating where to invest the balance. Of course, this is not investment advice simply my broad reading of entrails. India is also of appeal.
Started: JAdams5000, 29 Jul 2023 23:33
Last post: JAdams5000, 29 Jul 2023 23:33
Started: Alas_Smith, 25 Jul 2023 22:24
Last post: Alas_Smith, 25 Jul 2023 22:24
Putting my cards on the table. My investment psyche is long term. I've made plenty of mistakes in the past but those I make these days tend to be limited to timing. BEG is a good example when I bought shares in anticipation of a worsening economy to cause an increase in UK companies in distress. And, I believe I was spot on in such decision, and, despite the overall decline in the value of my investment, correct in the timing to buy.
Long term is 5 years or more (in my book) with medium of 2-5 years and short term everything else.
My reading of the entrails when playing "pin the tail on the donkey" for BEG was that having 6 months of high inflation from the invasion by Russia into Ukraine, that was the trigger for consumer spending to dry up (despite the desire for freedom from the shackles during Covid) and in turn those companies that were poorly capitalised would fail. They did. In ther 6 months following the beginning of the tightening of credit and the increase in interest rates, the next tier of companies would seek relief through re-structure. We are firmly in that stage now, I believe.
The eventual stage will be seen in the next 3 months with the start of recession and expect to last 12 months as businesses contract, close and the reposession of property happen in advance of foreclosure by banks (deliberately to be delayed by current Gov't) until June 2024 (perhaps the countdown to next General Election).
BEG share price should have begun to reflect these things, but it has not and I genuinely do not know why. I have confidence (well, no reason to doubt their talent) in the managers to manage their core competence, business restructure or closure, but the route for acquisition has not presented any real value to shareholders (yet). Companies failing continues to rise and the number as a percentage is actually increasing. So that SHOULD be very beneficial to BEG.
Long term the strategy to have the add-on businesses is terrific, but the immediate past in which these have been announced are that these were poor choices. I hope therefore that now, as the pace of interest rate rises slows, (and it sounds cruel) that good businesses need re-structuring and BEG win a slew of orders to begin to take advantage of the recent add-on companies to profit the ledgers and in turn reflect in the market capital for BEG.
Started: EquityDevelopmen, 20 Jul 2023 13:47
Last post: EquityDevelopmen, 20 Jul 2023 13:47
Begbies Traynor Group plc (AIM: BEG), the professional services consultancy, conducted an Investor Presentation covering their final results for the year ended 30 April 2023.
Ric Traynor (Executive Chairman) and Nick Taylor (Group Finance Director) talked through the performance in their key business areas of insolvency, property advisory & transactional services, and also outlined their future plans. Management then answered a wide range of questions from the audience.
The full presentation video has been divided into chapters as below:
0:00:03 Introduction and results highlights
0:03:19 Financials
0:13:15 Strategic Review
0:25:52 Summary
0:26:45 Questions & Answers
Link to full video: https://www.equitydevelopment.co.uk/research/fyresultspresentation-19july2023
Started: piworld, 12 Jul 2023 09:18
Last post: piworld, 12 Jul 2023 09:18
Begbies Traynor Executive Chairman, Ric Traynor and Group Finance Director Nick Taylor present final results for the year ended 30 April 2023.
Watch the video here: https://www.piworld.co.uk/company-videos/begbies-traynor-group-beg-full-year-2023-results-presentation-july-23/
Or listen to the podcast here: https://piworld.podbean.com/e/begbies-traynor-group-beg-full-year-2023-results-presentation-july-23/
Started: EquityDevelopmen, 11 Jul 2023 07:54
Last post: Chelsea11, 11 Jul 2023 14:30
I’m not looking to re-rubbish opinion, nor ask for anyones post to be deleted lol.
Ftseexplorer, in anticipation of reasoned debate, the numbers released today are for the benefit of ALL investors. My contention that growth through acquisition is distracting has merit. Just need to look at the contribution that these have provided and the costs incurred in so doing.
The benefit of acquisition is likely to be seen in future years but not, again my opinion, in the current year.
I have found it helpful to rely on facts, so https://www.creditsafe.com/gb/en/blog/reports/insolvencies.html might be of interest as well as the Governments own statistical figures.
Of course, Chelsea11 might wish to put a brave face on things, and simply seek to rubbish my opinion. Doubtless point to the share price chart that does show, since April this year as rising. I would also agree that there is a broad trending rise in the share price over a 3, 5 and 10 year period. BUT over the shorter term of 1 and 2 years, at best it seems to be treading water.
For an accountancy outfit specialising in companies in distress, there has to be some rational reason when facts demonstrate that more and more companies are struggling. As it co-incides with expansion through acquisition of non-core business, I remain of the opinion that it has been a distraction.
What i would say is that the wording of the post you refer to 3 months ago is not ideal but I think there was enough data to allow question marks on acquisition strategy to remain. I remain quizical and am prepared to accept it needs more time. If you look at FRP operating in the same counter cyclical market who haven't spent on acquisition but achieiving similar growth in rev and profitability.
Ftse - so would you say it’s reasoned debate to state little growth / acquisitions are a distraction, well before the company has released updates to the market? Or would you say that is enticing a disagreement?
Chelsea11, I use the platform to read reasoned debate and I see no value in enticing disagreements. These are good results and encouraging but the city don't seem blown away today and we are some way away from recent highs of £1.48 seen in January despite a clearly bearish marketplace. IMV there remains a question mark whether all of the acquisitions are having the synergistic effect they are designed to have.
Turnover growth of 11% of which 6% was organic strikes me that BT are operating with growing tail winds anyway and the £5.36m of turnover generated through acquisition has cost £8.4m (plus on-going amortisation of acqusitions of £6.3m). Time will only tell whether these synergies accelerate but an increase in operating margin of 1% to 17.9% is a good start. I have specific doubts over buying small chartered surveyors as against bringing these on naturally in-house. There is a risk that these individuals are locked in only until they achieve their earnouts and leave to set up again. I also have a gripe at the continued dilution of shares for incentives. I think I would prefer to see BT pull back on acquisitions, focus on execution andwinning new business and using cash flow to share buy backs.
Last post: Chelsea11, 11 Jul 2023 07:36
Double underlines what was posted here in May. Market expectations exceeded. Significant growth reported, acquisitions helping to fuel that growth, outlook very positive.