Diversification and track record merits higher rating

Begbies’ H1'25 revenue growth of 16%, including 11% organic growth, is testament to management’s strategy of broadening its professional service offer, increasing the group’s resilience and expansion opportunities. Having delivered a six-fold increase in Adj. PBT over the past decade, and an impressive 16% in H1'25, we see Begbies’ valuation derating as unwarranted. Begbies delivered another admirable all-round performance in H1’25 with its business recovery and advisory services achieving 12% organic growth, augmented by its property advisory services expanding by 24% (8% organically and 16% from the consolidation of SDL Property Auctions and Andrew Forbes valuations practice). This led to a 30bps improvement in group operating margin to a...