Begbies Regulatory News (BEG)

1 December 2015

Begbies Traynor Group plc

Acquisition

Begbies Traynor Group plc (the "Group") today announces its first property services acquisition since it entered this market with the acquisition of Eddisons in December 2014.

The Group has acquired the entire issued share capital of TBS&V Limited, which trades as Taylors Business Surveyors and Valuers ("Taylors") for a maximum consideration of £1.85 million. The 20 strong team, including management, will be integrated with the Group's existing Eddisons property services consultancy.

Taylors was established in 1992 and specialises in providing commercial business and property valuations for secured lending purposes on a nationwide basis, on behalf of a wide range of financial institutions, including all of the major high street banks.

In the financial year ended 31 March 2015, Taylors reported annual revenue of £1.5 million and pre-tax profits of £0.2 million. It had gross assets of £0.6 million as at 31 March 2015.

Principal terms of the acquisition

The acquisition is for an initial consideration of £1.1 million, to be satisfied in cash of £0.5 million, from the Group's existing resources and through the issue of 1,389,661 new ordinary shares of 5 pence each in Begbies Traynor Group plc ("Ordinary Shares"). The acquisition is on a cash free, debt free basis. Under the terms of the acquisition, additional contingent consideration of up to £0.75 million will become payable subject to the financial performance of the Taylors business over the five years from completion, satisfied by issuing new Ordinary Shares at the prevailing market value. The acquisition is expected to be earnings enhancing, both initially and after any additional consideration is paid.

An application has been made for 1,389,661 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 4 December 2015.

Following Admission, the Group will have 106,090,660 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.

Anthony Spencer, Director of Eddisons, commented:

"I am very pleased to welcome the Taylors team into Eddisons. The acquisition of Taylors will enhance our existing valuations department by adding further depth to our commercial business valuations capability and strengthening our combined offering to lenders."

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

"I am pleased to announce the first acquisition for Eddisons which, in line with our strategy to develop our property consultancy offering through organic investment and selective acquisitions, will enhance our existing capabilities and relationships."

- ENDS -

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)

Bruce Garrow / Nilesh Patel

Shore Capital 020 7408 4090

(Joint Broker)

Pascal Keane

MHP Communications 020 3128 8100

Reg Hoare / Katie Hunt / Giles Robinson begbies@mhpc.com

Notes:

Begbies Traynor Group plc operates nationally from a comprehensive network of UK locations through two operating divisions.

Begbies Traynor is the UK's leading independent business recovery practice handling the largest number of corporate appointments, principally serving the mid-market and smaller companies. We provide a range of specialist professional services primarily to businesses, their professional advisors and the major banks covering insolvency, restructuring and risk management activities.

Eddisons is a leading UK firm of chartered surveyors, offering a wide range of specialist services to banks, insolvency practitioners, and owners and occupiers of commercial property. The core services offered are valuation and disposal of property including fixed charge property receiverships; valuation and disposal of machinery and business assets; auctions; insolvency insurance brokerage; property management; building consultancy and ratings valuations.

Information on Eddisons can be accessed via www.eddisons.com

Information on Begbies Traynor Group can be accessed via www.begbies-traynorgroup.com