Begbies Regulatory News (BEG)

15 Feb 2005 07:00

Begbies Traynor Group PLC15 February 2005 RNS Release 15 February 2005 Begbies Traynor Group plc Acquisition of A. Segal & Co Begbies Traynor Group plc ("Begbies Traynor" or "the Group") (AIM: BEG), the UK's foremost independent insolvency, corporate rescue and recovery specialist,today announces the acquisition of an established South East-based insolvencypractice - A. Segal & Co ("Segal"). The Group will pay £450,000 for Segal initially. Over the course of the nextthree years, it will make further payments of a minimum £50,000 per annum plus aturnover-related uplift conditional upon Segal's satisfactory achievement ofturnover targets. The Group does not expect the gross consideration to exceed£1m in total. Based in Chingford, Essex, the firm specialises exclusively in insolvency work(company administrations, personal bankruptcies, liquidations andreceiverships). Established in 1980 by Mr. Andrew Segal, the firm's new casework mostly results from its strong business relationships with local solicitorsand accountants. In the year to 30th April 2004, Segal's fees received were inexcess of £850,000. Andrew Segal and the firm's staff will largely relocate to Begbies Traynor'sLondon office, although the Chingford address will remain as a 'satellite'office. The main strategic rationale for Mr. Segal joining Begbies Traynor is theopportunity to handle larger cases, which as a national business with greaterresources the Group is better able to win. The acquisition is Begbies Traynor's first since floating on AIM in October 2004and a key part of the Group's objective to double market share by 2007. BegbiesTraynor plans to grow through sustained organic expansion and by making otheracquisitions of smaller independent practices, with further deals expected thisyear. Ric Traynor, Executive Chairman of Begbies Traynor, comments: "We are pleased to welcome Andrew and his colleagues to Begbies Traynor. He hasbuilt up a very good, profitable firm. He has joined Begbies Traynor to dobigger and better work which will be possible because of our relationship withbanks and our national network. "We anticipate that there will be cost savings as a result of the integration ofSegal into the Group's operations; however, we expect the acquisition to beearnings enhancing even before such benefits. "This acquisition is the first since we floated and we intend to do more thisyear as we aim to achieve our stated intention of doubling our market sharewithin three years." Enquiries, please contact: Ric Traynor Neil Boom/Jenny LeahyExecutive Chairman Gresham PR Ltd.Begbies Traynor Group plc 020 7404 90000161 839 0900 Information on Begbies Traynor can be accessed via the Group's website atwww.begbies-traynor.com Notes to Editors About Begbies Traynor Group plc The Group specialises in corporate insolvency management, offering expertise inadministrative receivership and liquidation services as well as personalinsolvency management including individual voluntary arrangements. It alsooffers services in the fields of corporate rescue and forensic investigation.The Group has grown to its current network of 23 nationwide offices ranging fromScotland to the South West of England, with over 240 people. The Company intendsto pursue a strategy of organic development, coupled with the acquisition ofspecialist knowledge of both individuals and firms, to further increase itsscope and range of services. The Directors believe that the Group is the UK's largest independent insolvency,corporate rescue and recovery specialist with clients ranging from majorinstitutions to individuals with business difficulties. The Office Network The Group operates with 45 licensed insolvency appointment takers, some 140 feeearning staff and 55 in support and administration. In total the Group operatesfrom some 23 locations of which five are regional offices, a further eight arefull offices and ten are satellites. Business Activities The core business of the Group is the formal administration of insolvenciesincluding receiverships, liquidations, administrations, company voluntaryarrangements and personal insolvencies. The Group has recently extended itsactivities into a range of consultancy services including corporate rescue,credit management and forensic and investigation services. This information is provided by RNS The company news service from the London Stock Exchange