Begbies Share Chat (BEG)

The BEG ticker is frozen but as you say the BTG one is an old company and BTG Consulting doesn’t look to be UK.

I might write to admin to sort it out as it’s live on Google as BTG.

Im not a fan of the name change. new ticker: https://www.lse.co.uk/rns/BTG/

looks like the ticker belonged to Boston Scientific previously.

Reflecting a decade of excellent revenue growth across increasingly diversified advisory services, Begbies Traynor is changing its name to BTG Consulting plc. Under this new name, and with the recently enhanced management team, the group is well placed for further profitable growth across its wide range of financial and real estate advisory services.

As we recently wrote in Strategic diversification clearly paying off, BTG’s organic and acquired expansion has led to a decade of 13% revenue CAGR and a broad-based financial and real estate advisory business, with a new CEO, Mark Fry.

Meanwhile UK businesses are still struggling under the weight of higher wages and inflation, increased tax burdens, elevated interest rates, and still weak consumer demand, suggesting a strong pipeline of work for BTG’s diversified services. BTG’s latest Red Flag Alert report shows a 44% yoy increase in businesses in “critical” financial distress.

Although the share price has recovered its summer decline, it still trades on less than 10x cal 2027 PER, c. 30% below its long-run average valuation multiples and below our 150p Fair Value.

Link to research note: https://www.equitydevelopment.co.uk/research/strategic-change-of-name-to-btg-consulting

BEG have saved two sizeable companies out of administration in the last few days.

It's obviously financially good for BEG if these administration appointments drag on as long as possible, but positive outcomes like these will enhance their reputation and encourage others to look in their direction for future business:

The first is Clayton Equipment:

Https://www.marketscreener.com/news/begbies-traynor-langley-holdings-division-acquires-clayton-equipment-from-administration-ce7e58dbdd8ef72d

And also Circle Express:

Https://www.insidermedia.com/news/national/rescue-deal-safeguards-more-than-150-jobs-at-airfreight-industry-logistics-firm

"Rescue deal safeguards more than 150 jobs at airfreight industry logistics firm

By Laurence Kilgannon

12 Jan 2026"

"More than 150 jobs have been safeguarded after administrators secured a rescue deal for a logistics provider which offers specialist services to the airfreight industry.

Circle Express, a logistics company, specialising in the next-day and same-day delivery across the UK, appointed Dean Watson and Paul Stanley of Begbies Traynor as joint administrators on 19 December.

The business and assets were subsequently acquired by Trilogy Logistics, a Manchester-headquartered logistics provider, which has a further office in Slough and offers specialist services to the airfreight industry, saving all 158 jobs at the UK logistics firm and bringing it under new ownership.

Administrators said the newly revealed deal meant there was no disruption to business services allowing customers to be serviced and employees paid on time.

Circle Express is headquartered in London Heathrow with depots in Aberdeen, Birmingham, Exeter, Manchester and Glasgow.

etc"

From today's Sunday Times FYI:

Https://www.thetimes.com/business/economics/article/soaring-costs-taxes-push-more-high-street-firms-brink-86dmkndvl

Extracts:

"Soaring costs and taxes push more high street firms to the brink

A challenging 2026 looms for retailers after administrations rose by 21.4% in the year to November. But Boxing Day footfall beat expectations"

"However, the Boxing Day figures came after the number of general retail firms considered to be in “critical distress” surged by 16.7 per cent year-on-year in the fourth quarter of 2025 (up to December 15), hitting 1,947, according to a “red flag” report from the insolvency practitioners Begbies Traynor."

"It is not just retailers facing the prospect of a challenging year. According to Begbies Traynor’s data, the number of bars and restaurants in critical distress rose by 14.1 per cent in the last quarter of the year to 1,034.

Julie Palmer, regional managing partner at Begbies Traynor, said: “If anything, the situation with the hospitality sector is even more precarious. Typically, this sector operates on narrow margins and even small changes to the cost base can have a devastating impact.”

BEG have just been appointed as administrators for a 12 bed boutique hotel in Aberdeenshire, which will continue to run whilst a buyer is sought:

Https://www.aberdeenlive.news/news/aberdeen-news/award-winning-historic-aberdeenshire-hotel-10719398

And BEG have been appointed provisional liquidators at The Aviemore Cafe:

Https://www.heraldscotland.com/news/25709395.jobs-lost-company-collapses-run-up-christmas/

Https://www.scottishfinancialnews.com/articles/begbies-traynor-group-invests-in-growth-with-edinburgh-office-expansion

Extracts:

"Begbies Traynor Group invests in growth with Edinburgh office expansion

16 Dec 2025

Begbies Traynor has invested in a five-year lease at a new Edinburgh office location at 3 Semple Street as the firm’s team in Scotland continues to expand."

"Begbies Traynor has expanded its restructuring and insolvency teams over the last 20 years, but also with diversification into many other complementary areas of business advisory work, such as debt and property advisory, so our footprint is growing too.”

“The new location will be a great base to build our presence in the city as we target further growth in 2026,” he added."

Https://www.equitydevelopment.co.uk/news-and-events/begbies-traynor-investor-presentation-hy-results-12th-december-2025

Canaccord have raised their target price to 160p (from 157p).

They forecast 10.6p EPS this year (at the the lowest end of guided expectations, so hopefully to be beaten), and have raised next year's forecast to 11.3p EPS.

They conclude:

"Strong balance sheet gives options

We forecast net debt at FY26 year end of £1.5m. Gearing (net debt/EBITDA) remains very low at 0.1x. Begbies has >£30m headroom on its total available facilities, which could continue to fund earnings accretive M&A. This is a proven adjunct to the organic growth strategy, helping to deliver an impressive 14% historic 10- year adj. dil. EPS CAGR."

"Valuation and recommendation

Our valuation methodology remains unchanged i.e. we continue to apply a 14.5x multiple to CY26E EPS. The multiple is unchanged and a 10% premium to BEG's 10-year average P/E multiple. We believe this is justified by the company's strong prospects at the current point in the cycle. The small increase to our FY27 adj.dil EPS forecast results in our TP nudging 2% higher to 160p (prev: 157p), implying 46% upside and a 50% TSR. Maintain BUY."

Purely speculation, but I think the CEO appointment is part of a medium-term plan to sell the business and provide Ric with an exit.

I’m wondering if investors will take this stock ‘more seriously’ (loose lazy term apologies) if Beg was to move into the main market. Not sure what the advantages are with staying in AIM. In fact I’d go further and state its better managed and regulated than many of the main market stocks - thoughts all?

The online event will be hosted by Ric Traynor (Executive Chairman), Mark Fry (CEO) and Nick Taylor (CFO), and will begin at 11.00am on Friday 12th December.

This webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.

Register (free) here to attend: https://www.equitydevelopment.co.uk/news-and-events/begbies-traynor-investor-presentation-hy-results-12th-december-2025

Begbies’ interim results show real momentum, with the positive outlook enhanced by two recent acquisitions and an expanded leadership team. The group has confirmed it is on track for both FY26E consensus expectations and its near-term target of £200m revenues.

Revenues rose 7% to £82m and Adj. PBT was up 5% to £12.1m. The group’s investment in new senior hires has led to 10% organic growth in the restructuring business, whilst property advisory revenues rose by7%.

This momentum has continued into H226 with an “encouraging flow of new instructions” (and an increased order book of £81.6m), and two delayed corporate finance transactions completed in November.

Surprisingly, Begbies’ shares have fallen over 10% since the summer. With highly profitable organic growth of 5%-6%, and free cashflow to fund both acquisitions and dividends, we see scope for a further rerating.

Our fair value of 150p / share equates to a c.6.5% cal 2026 FCF yield (pre-acquisitions).

Read full research note here: https://www.equitydevelopment.co.uk/research/strategic-diversification-clearly-paying-off

Shore Capital have raised their forecast for this year to 11.3p EPS (from 11p EPS).

This is due to the "encouraging workflows", including the Sheffield Wednesday appointment, per the results, and the impact of the two new acquisitions.

Good, solid H1 performance, with most metrics up by 5%-7%, including the dividend up 7%.

Today's confidence in meeting full year expectations of 10.6p-11p EPS looks justified. With 5.4p EPS in H1, BEG merely have to repeat that performance to meet expectations. Given two acquisitions after H1, particularly the weighty Kirkby Diamond, a slight property H1 weighting should be more than offset.

At 110p BEG still looks pretty good value, and more acquisitions are likely and affordable from the current balance sheet.

Steady and reassuring - hopefully back to growth now.

Half-year Results

Summary

Begbies Traynor reported H1 revenue +7% to £82.0m and adjusted EBITDA £16.1m (+5%, 19.6% margin) with adjusted PBT £12.1m (+5%) and adjusted diluted EPS 5.4p (+6%); statutory PBT rose to £8.6m and interim dividend increased 7% to 1.5p while net debt was £5.7m after earn-outs and buybacks but the group retains substantial bank facility headroom. Organic strength in restructuring and property advisory (respective revenue growths +8% and +7%, property profit +26%), two property acquisitions completed post-period, and management changes underpin a FY outlook in line with analyst adjusted PBT forecasts of £23.7–£24.9m.

There was a footnote in a previous RNS that profits are being impacted by increased staffing NI payments (they do have over 600 employees after all) but hopefully they'll blow the estmates out of the park.

Business rate increases following the budget are off the scale for Hospitality, hotels and pubs and others seeing a three /four fold increase in rates on governments proposals that will destroy many businesses. Unless there is an urgent re valuation down huge numbers of closures forecast from both small independants to large chains like Travelodge. Whitbread has stated today it will incur a £50 million increase in costs following the budget !

Always thought Beg was a hedge to my portfolio as it thrives on a weaker economy. Maybe not so much since they are branching out into property management / sales etc. But it’ll be interesting to see how the SP reacts this afternoonI have significantly increased my position in the hope the SP will now climb to the December update. Gla

Shore Capital will adjust their forecasts in 10 working days when the H1 results are out, but conclude in the meantime:

"Valuation

The stock trades at 9.5x calendar ’25 and 8.8x calendar ’26 (the numbers in the table below are fiscal years), with mid-single-digit earnings growth this year, and c. 8% in FY26. Returns are strong, with a 15% adjusted PBT margin and a ROE in excess of 22%, achieved with little debt.

Dividend yield is 4.1% and FCF yield a remarkable 10.7% this year. N.B. that these estimates are all organic and neither include the small Network Auctions acquisition of 25.11.25 nor this Kirkby Diamond acquisition, part facilitated by some slight equity issuance"

That's two acquisitions in two days!

Excellent earnings-enhancing acquisition just announced, and decent-sized too - this is much more like it.

70% of the initial consideration is from cash, plus the entire deferred consideration based on performance, so the share element is small.

Perhaps this additional £1m of pre-tax profit - plus almost £1m additional cash - taking the property division to a revenue run rate over £50m will wake the market up somewhat:

Https://uk.advfn.com/stock-market/london/begbies-traynor-BEG/share-news/Begbies-Traynor-Group-PLC-Acquisition/97318127

"Complementary acquisitions add to growth thesis" - new research freely accessible here: https://www.equitydevelopment.co.uk/research/complementary-acquisitions-add-to-growth-thesis

Begbies has announced two acquisitions this week for a maximum consideration of £9.25m, adding to its property advisory and transactional services division, Eddisons. In keeping with Begbies’ strategy for value-accretive acquisitions that add services or geographies, Begbies is paying c.1.0x EV/Sales for an additional c.4% of sales.

The £8.25m acquisition of Kirkby Diamond LLP and Kirkby Diamond Property Management, (together adds five, complementary, office locations along the M1 corridor and all 62 staff will join Begbies Traynor. In keeping with prior acquisitions, Begbies is paying £5m initial consideration (£3.5m cash and 1.3m shares) and a 3 year earn out of £1.5m for maintaining current financial performance and a further £1.75m subject to profit-enhancing financial performance.

In addition, Begbies Traynor has announced the acquisition of an online national property auctions business with five staff, Network Auctions, to complement its existing auctions business. The group is paying £0.5m cash (0.8x EV / Sales) and a further £0.5m subject to revenue growth targets.

Acquisitions are a key part of Begbies’ strategy. Since we forecast that it will generate over £16m FCF pre-acquisitions per annum, it clearly has capacity for these deals, and potentially more. Trading on under 10x cal 2026 PER, we believe its shares are materially undervalued and retain our 150p fair value.

This always dips before results which are (well have been) usually excellent - then runs up to the late teens just before they are issued - then a brief break into the 120s and slow retrace. I’m feeling we’ll see the same again action on the run up to Decembers update. Almost seems like it’s being manipulated - but of course theres none of that in play in our honest markets… all imho and gla. Thoughts all?

Shore Capital have issued a brief update, noting that whilst non-material, today's acquisition "adds scale and further builds national coverage".

They conclude:

"Market appreciation

The stock trades at 9.5x calendar ’25 and 8.8x calendar ’26 (the numbers in the table below are fiscal years), with mid-single-digit earnings growth this year, and c. 8% in FY26. Returns are strong, with a 15% adjusted PBT margin and a ROE in excess of 22%, achieved with little debt. Dividend yield is 4.1% and FCF yield a remarkable 10.7% this year. N.B. that these estimates are all organic and neither include this Network Auctions acquisition nor any further inorganic growth, while such is the stated and clearly continuing strategy of the Group."

This acquisition of auctioneers for £.5 million with revenue of £.6million balance payable on performance target looks ok. After 3 years of acquisitions though, yet to see any gains for its own market cap which is a concern.

A nice in-fill acquisition this morning with the purchase of a property auctioneers business:

Https://uk.advfn.com/stock-market/london/begbies-traynor-BEG/share-news/Begbies-Traynor-Group-PLC-Acquisition/97307594

St Andrews-based Eden Mill Distillery has been acquired from administration, saving the jobs of all 42 staff, Begbies Traynor has announced. Kenny Craig and Kevin Mapstone of Begbies Traynor were appointed joint administrators of the distillery’s owner, St Andrews Brewers Limited, on Tuesday.

https://www.scottishfinancialnews.com/articles/scottish-distillery-eden-mill-rescued-by-investors

"Diversified advisory portfolio drives robust growth" - new research report with video summary freely accessible here: https://www.equitydevelopment.co.uk/research/begbies

Begbies’ H1'26 revenue and Adj. PBT rose by 7% and 5% respectively, driven by strategic investment in staff, favourable macro-economic conditions, and growth across its breadth of services. The company is confidently on track for FY26E revenue and profit expectations.

H1 saw further good growth with group revenues +c.7% to c.£82m. Begbies’ core restructuring advisory business led with over 10% organic growth, and Property advisory revenues (30% of group in FY25) rose by 7%.

National insurance increases have cost c.85bps of operating margin, but efficiencies and an underlying improvement in margin have reduced the overall impact to a c.50bps decrease at group level: to a still high 16%.

Management is confident in delivering FY26E expectations (consensus FY26E Adj. PBT of £23.7m-£24.9m) and we make no changes to our overall forecasts. Begbies looks well positioned, generating cashflow to invest in growth and capital returns, whilst the macro-economic environment remains favourable for group activities.

Yet Begbies is trading on only c.6x EV/EBITDA, standing at a material discount to both its long-run average valuation multiples and our unchanged fair value of 150p/ share.

The H1 update details "a good first half performance", being nicely in line and with confidence in meeting expectations of consensus around 10.8p EPS.

Good progress in restructuring and particularly property, with profits up by 25%, offset by some understandable pre-Budget weakness in financial advisory - although it's notable that BEG say these completions are only delayed and "will benefit H2".

Plus there's "an attractive pipeline of acquisition and organic investment opportunities".

BEG still looks very good value imho on s P/E barely above single figures.

They keep on coming...

With the support of professional advisors (Begbies Traynor), BBF Ltd is taking the necessary steps to place the company into Liquidation 14/11/25

https://gb.basketball/news/bbf/british-basketball-federation-statement/

Principal Insurance Limited Buyout: Begbies Traynor managed the administration process that led to Principal Insurance Limited acquiring the business of Peart Performance Marque Limited. 12/11/25

https://www.insurancetimes.co.uk/news/manchester-based-broker-completes-buyout-of-non-standard-broker-that-entered-administration/1456818.article

Keep them coming :-)

Scotch Frost of Glasgow Limited: The Uddingston-based food importer and distributor ceased trading, with Kevin Mapstone and Paul Webber of Begbies Traynor appointed as joint administrators on November 4, 2025.

The estate of former Scottish first minister Alex Salmond: Kenny Craig of Begbies Traynor was named as the trustee in sequestration (the Scottish equivalent of bankruptcy) to manage the complex and unusual case involving ongoing legal proceedings against the Scottish Government on November 7, 2025

Good news in yesterday's Sunday Times for BEG regarding an "avalanche" of work coming in from the education sector:

Https://www.thetimes.com/business-money/companies/article/private-school-finances-are-a-mess-now-its-boom-time-for-consultants-jkcwpxbv5

"Private school finances are a mess. Now it’s boom time for consultants

Since last year 81 independent schools have shut and 25,000 pupils have left the sector. It’s triggered an ‘avalanche’ of work for advisers"

"However, the upheaval caused by Labour’s tax changes has proved a source of lucrative work for consultants and lawyers as schools scramble for specialists to help shore up their operations and adapt to the new reality.

Martin Barron, a partner at BTG Advisory, part of the business-recovery specialist Begbies Traynor Group, said there had been a “clear uptick in engagement” from independent schools since the new tax came into force.

“We have seen more requests for restructuring, refinancing and business review advice across schools of varying sizes, primarily driven by a reduction in pupil numbers,” he said."

"As a result of all this, mergers and acquisitions have become rife. Barron of BTG Advisory said his firm was “seeing growing consolidation within the sector as schools respond to financial pressures and explore options to secure long-term stability and viability”."