(Updating with a company-issued adjustment to corporate insolvencies in 2017 to 15,112 from 16,112.)
LONDON (Alliance News) - Business recovery and property services consultancy Begbies Traynor Group PLC said Tuesday it acquired Springboard Corporate Finance Ltd for in a cash and stock deal worth up to GBP3.3 million, and added that year-to-date trading remained in line with its expectations.
Springboard - with offices in Birmingham, London and Nottingham - operates as a mid-market corporate finance practice. In 2017, Springboard completed 17 transactions with a total value in excess of GBP225.0 million.
For the year ended June 2017, Springboard generated GBP750,000 in pretax profit on revenue of GBP2.3 million.
Begbies will pay an initial GBP2.8 million on a cash and debt free basis. This initial consideration will be paid through GBP1.4 million in cash and 1.9 million shares in Begbies. Following admission of these shares - expected on Friday - Begbies will have 109.7 million shares outstanding.
A further contingent of up to GBP500,000 will become payable dependent on the acquired business hitting certain financial targets over the five years following completion. This additional contingent is payable in cash.
"I am delighted to welcome the Springboard team to the group," Begbies Traynor Executive Chairman Ric Traynor said, "they are a highly-regarded, mid-market corporate finance practice which is complementary to our existing advisory services. We look forward to supporting their expansion plans and their contribution to further growing the group's revenue and profits."
Also on Tuesday, Begbies reported trading in the year to the end of the third quarter was in line with its expectations. revenue and profit both experienced growth during the period "reflecting improved year-on-year performance in business recovery and advisory services," the company explained.
Begbies emphasised that corporate insolvency appointments saw a year-on-year increase. In 2017, the total number of insolvencies in 2017, Begbies added, grew 2.5% to 15,112 from 14,751 in 2016. The sharp increase in 2017 followed what it called the "lowest level of corporate appointments since 2004."
Ric Traynor added: "A good performance in the first nine months of our financial year bodes well for a positive full year outcome, and is expected to ensure the group continues its recent track record of profit and earnings growth."
"Our strengthened financial performance is enabling us to execute our strategy and continue to invest in the growth of the business as demonstrated by our two recently completed acquisitions," Traynor added.
Begbies (BEG)