Begbies Regulatory News (BEG)

3 May 2006 13:40

Begbies Traynor Group PLC03 May 2006 RNS Release 3 May 2006 Acquisition of two Middleton Partner practices and Pre-Close Trading Update Begbies Traynor Group plc ("Begbies Traynor" or "the Group") (AIM: BEG), the UK's largest nationwide independent insolvency, corporate rescue and recoveryspecialist, today announces the acquisition of the entire equity interests ofMike Stevenson and Julie Palmer of Middleton Partners ("Middleton"). Middleton was established in 2002, many of its principals having previouslyworked for national accountancy practice Smith & Williamson. Under the deal, theMiddleton offices in Salisbury and Southampton will trade as part of BegbiesTraynor and the total assets and staff of 16 employees will be transferredimmediately to the Group. Mike Stevenson and Julie Palmer will continue with thebusiness. The Group will pay an initial consideration of £1 million on completion, and anadditional £500,000 to be satisfied three months later, which the Group has theoption to settle by issuing 274,725 shares in Begbies Traynor Group at £1.82pence per share. Subject to Middleton's offices maintaining and improvingcurrent profit levels over the next two years, Begbies Traynor will payadditional cash considerations. In its last trading year, Middleton achievedfees in the region of £1.75 million. By acquiring Middleton's Southampton and Salisbury businesses, the Group willenhance its presence in the South and South West of England. Middleton'sSouthampton and Salisbury offices are profitable and have been enjoying year onyear turnover growth. They will immediately be rebranded as part of the BegbiesTraynor Group. By joining the Group, the local practitioners will have theopportunity to work on larger, more technically challenging cases that are onlyaccessible via referrals from high street banks. Begbies Traynor plans to continue its expansion strategy of growth viaadditional acquisitions and further organic expansion. Its stated strategic goalis commanding a 10% share of the available market in corporate insolvency work. Pre-Close Trading Update The Group has made good progress and is on course to deliver further growth inline with current market expectations. Results for the year ended 30 April 2006are expected to be announced in July. Ric Traynor, Executive Chairman of Begbies Traynor, comments: "We are pleased to welcome Mike and Julie and their colleagues to BegbiesTraynor. We were very keen to increase our presence in the South and South Westand are delighted that we now can offer clients the full range of services fromour new offices in Southampton and Salisbury." Enquiries, please contact: Ric Traynor Neil Boom/David PettetExecutive Chairman Gresham PR Ltd.Begbies Traynor Group plc 020 7404 90000161 839 0900 Mike SawbridgeDirector of Corporate FinanceShore Capital Stockbrokers Limited0151 600 3722 This information is provided by RNS The company news service from the London Stock Exchange