Begbies Regulatory News (BEG)

5 April 2019

Begbies Traynor Group plc

Acquisition

Enhancing and widening our specialist property consultancy services

Begbies Traynor Group plc (the "Group") today announces the acquisition of the entire issued share capital of BSMH Limited, which trades as Barker Storey Matthews ("BSM"). BSM is one of the largest independent firms of chartered surveyors in Eastern England with offices in Cambridge, Huntingdon, Peterborough and Bury St Edmunds.

BSM was recently ranked the overall winner for Eastern England in the EG Deals Competition 2018 ('EG') for commercial property agents. The firm has 38 employees and is led by an experienced and well-regarded management team, who will join the group. BSM will be integrated with the Group's existing Eddisons property services division.

The core services offered are commercial property agency, property management, building consultancy, professional services (including valuations) and planning services, consistent with those offered by the existing Eddisons business. As ranked by EG, BSM has strengths across the office, industrial, retail and investment sectors.

The acquisition is in line with our strategy to develop our property services business through selective acquisitions to enhance our expertise and geographical coverage.

In the financial year ended 31 March 2018, BSM reported annual revenue of £3.1 million andpre-tax profits of £0.6 million. It had gross assets (excluding cash at bank) of £0.7 million as at 31 March 2018.

Principal terms of the acquisition

The acquisition is for an initial consideration of £1.6 million, to be satisfied by £1.067 million in cash from the Group's existing resources and through the issue of 844,290 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 £1.4 million will become payable subject to the achievement of stretching financial targets for the business in the three year period directly following completion. Any additional consideration is calculated according to an agreed formula and is payable in cash.

The acquisition is expected to be earnings enhancing, both initially and after any additional consideration is paid.

An application has been made for 844,290 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 10 April 2019.

Following Admission, the Group will have 112,554,212 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 at Eddisons, commented:

"I am very pleased to welcome the BSM team into Eddisons; it widens our geographical coverage to twenty offices around the UK and increases the number of clients. This is our fifth Eddisons acquisition since we joined the Group and we continue to seek opportunities for further growth, both organically and by strategic acquisition."

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

"The acquisition of BSM is in line with our strategy to develop our property services division, by enhancing our expertise and geographical coverage. BSM is highly complementary in terms of its skills, and extends our reach into a new and important region. The firm has excellent relationships with a broad range of clients and a strong track record of growth and profitability."

Enquiries please contact:

Begbies Traynor Group plc 0161 837 1700

Ric Traynor - Executive Chairman

Nick Taylor - Group Finance Director

Canaccord Genuity Limited 020 7523 4588

(Nominated Adviser and Joint Broker)

Sunil Duggal / Chris Connors

Shore Capital 020 7408 4090

(Joint Broker)

Mark Percy / Anita Ghanekar

MHP Communications 020 3128 8100

Reg Hoare / Katie Hunt

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