Last checked at 
(Alliance News) - Begbies Traynor Group PLC on Tuesday reported an almost quadrupling of profit in the first half of its year, benefiting both from organic growth and acquisitions.
For the six months ended October 31, the business recovery, financial advisory, and property services consultancy posted a pretax profit of GBP1.9 million, close to four times higher than its GBP489,000 profit a year before.
Revenue in the period rose 21% to GBP33.8 million from GBP28.0 million, including 10% organic revenue growth and its operating profit margin improved to 13.2% from 12.6%.
This included a 15% increase in business recovery & financial advisory revenue to GBP23.0 million from GBP20.0 million, with organic revenue growth of 13%. Property advisory & transactional services revenue rose 34% to GBP10.7 million from GBP8.0 million, with organic growth in line with the year before.
During the six-month period, Begbies Traynor completed three acquisitions: Alexander Lawson Jacobs on October 24, Ernest Wilson on October 18, and Regeneratus on September 23. The initial considerations for the acquisitions were GBP2.4 million, GBP4.0 million, and GBP500,000 respectively, and they carry additional payments of GBP4.0 million, GBP1.6 million, and GBP1.1 million.
Begbies Traynor declared a 0.9 pence per share interim dividend, 13% higher than the 0.8p per share paid the year before. It said it is "committed to a long-term progressive dividend policy".
Executive Chair Ric Traynor said: "The increased scale of the group's activities, favourable conditions in the UK insolvency market and our strong financial position leaves the group well placed to continue our track record of revenue and profit growth.
"Following a strong financial performance in the first half of the year, the board remains confident of delivering results at least in line with current market expectations for the full year, including the benefit of the first-time contribution in the second half from our recent acquisitions. We will provide an update on third quarter trading in early March 2020."
Shares in Begbies Traynor, which has its head office in Manchester, were flat at 88.00 pence in London on Tuesday morning.
Separately, Begbies Traynor said it has appointed Peter Wilhelm Wallqvist, co-founder and firmer chief executive of AI company RAVN Systems, as a non-executive director with immediate effect.
RAVN was acquired by iManage in May 2017, following which Wilhelm Wallqvist was vice president of Strategy & Global Practise director before leaving in October 2019.
By Anna Farley; annafarley@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
