Begbies Regulatory News (BEG)

21 October 2019

Begbies Traynor Group plc

Acquisition

Enhancing and widening our business and asset disposal services

Begbies Traynor Group plc (the "group") today announces the acquisition of the entire issued share capital of Ernest Wilsons & Co Limited and of Ernest Wilson's (West Yorkshire) Limited, which trade collectively as Ernest Wilson.

Ernest Wilson is a leading UK business transfer agent, providing agency services for the sale of small businesses across the UK. This long-established business, which is based in Leeds, operates across a broad range of sectors ranging from food outlets and convenience stores to care homes, restaurants and hotels. The business has 24 employees and is led by an experienced and well-regarded management team, who will join the group.

The acquisition enhances the group's existing transactional support services provided by Eddisons, which include the sale of commercial property, through agency and auction, together with machinery and business asset disposals. It is also complementary to the group's BTG Advisory and corporate finance offerings.

The acquisition is in line with our strategy to develop the group through selective acquisitions to enhance our expertise and service offering.

In the financial year ended 31 July 2019, Ernest Wilson reported annual revenue of £2.2 million and pre-tax profits of £0.7 million, when reported on the same basis as the group. It had gross assets (excluding cash at bank) of £0.5 million as at 31 July 2019.

Principal terms of the acquisition

The acquisition is for an initial consideration of £4 million, to be satisfied by £3 million in cash from the group's existing resources and through the issue of 1,163,874 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 £1.63 million will be payable in line with the achievement of financial targets in the three years following completion, with full payment only payable in the event that significant growth targets have been achieved. Any additional consideration is calculated according to an agreed formula and is payable in cash.

An application has been made for 1,163,874 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 25 October 2019.

Following Admission, the group will have 127,334,741 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.

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

"The acquisition of Ernest Wilson is in line with our strategy to develop the group, by enhancing our expertise and service offering.

"Ernest Wilson is highly complementary to our existing services and, by extending our transactional service offering, will enable us to deliver a broader range of services to support business and asset sales. Ernest Wilson has a long track record of delivering both excellent service to its clients and strong financial performance, which we expect to build upon as part of the broader group."

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 8100

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