Begbies Regulatory News (BEG)

25 October 2019

Begbies Traynor Group plc

Acquisition

Developing our market-leading insolvency practice

Begbies Traynor Group plc (the "group") today announces the acquisition of the entire issued share capital of Alexander Lawson Jacobs Limited ("ALJ"), a London-based insolvency and business recovery practice.

ALJ is a well-established firm and is ranked as a top 20 UK insolvency practice (by insolvency appointments). The team of 24 directors and employees will join the group and enhance our existing strong network of offices across London and the South-East.

The acquisition is in line with our strategy to increase the scale and market share of our market-leading insolvency practice.

The business has a strong recent record of financial performance; in the financial year ended 30 June 2019, ALJ reported annual revenue of £3.1 million and pre-tax profits of £0.9 million, when reported on the same basis as the group. It had gross assets (excluding cash) of £0.5 million as at 30 June 2019.

Principal terms of the acquisition

The acquisition is for an initial consideration of £2.35 million, to be satisfied by £2.1 million in cash from the group's existing resources and through the issue of 296,195 new ordinary shares of 5 pence each in the group ("Ordinary Shares"). The acquisition is on a cash free, debt free basis.

Under the terms of the acquisition, additional contingent consideration of up to £4.0 million will become payable subject to the achievement of financial targets for the business in the five year period directly following completion. Any additional consideration is calculated according to an agreed formula and is payable in cash. The maximum level of contingent consideration will only be available in the event of significant growth over the earn out period.

An application has been made for 296,195 Ordinary Shares to be admitted to trading on AIM ("Admission") in part satisfaction of the initial consideration. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares in the group and it is expected that dealings in these new Ordinary Shares will commence on 31 October 2019.

Following Admission, the group will have 127,630,936 Ordinary Shares in issue. The group does not hold any shares in treasury and, therefore, this figure may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the group.

Impact of recent acquisitions and share placing on earnings

The board expects that the aggregate impact of this acquisition and the recent acquisitions of Ernest Wilson* and Regeneratus**, together with the increase in shares in issue following the placing*** in July 2019, will be earnings enhancing in the current financial year and thereafter.

* Ernest Wilson acquisition announced on 21 October 2019

** Regeneratus acquisition announced on 24 September 2019

*** Placing of new shares announced on 26 July 2019

Ric Traynor, Executive Chairman of Begbies Traynor Group plc, commented:

"I am very pleased to welcome the Alexander Lawson Jacobs team to the group. They are an experienced team with a strong recent growth record, which will enhance our existing strong network of offices across London and the South-East.

"This acquisition is in line with our strategy to increase the scale and market share of our market-leading insolvency practice."

Enquiries please contact:

Begbies Traynor Group plc 0161 837 1700

Ric Traynor - Executive Chairman

Nick Taylor - Group Finance Director

Canaccord Genuity Limited 020 7523 8350

(Nominated Adviser and Joint Broker)

David Tyrrell / Sunil Duggal

Shore Capital 020 7408 4090

(Joint Broker)

Mark Percy / Anita Ghanekar

MHP Communications 020 3128 8572

Reg Hoare / Katie Hunt / Pete Lambie/ Florence Mayo

Information on Begbies Traynor Group can be accessed via the group's website atwww.begbies-traynorgroup.com