Begbies Regulatory News (BEG)

14 Jun 2006 07:01

Begbies Traynor Group PLC14 June 2006 RNS Release 14 June 2006 Acquisition of Wilson Pitts Begbies Traynor Group plc ("Begbies Traynor" or "the Group") (AIM: BEG), theUK's largest nationwide independent insolvency, corporate rescue and recoveryspecialist, today announces the acquisition of the entire equity interests ofDavid Wilson and Julian Pitts, the founding partners of Leeds-based corporateand personal insolvency firm Wilson Pitts. Wilson Pitts's entire client base and 17 full-time staff will be transferredwith immediate effect to Begbies Traynor's ownership. The acquisition is for an initial cash consideration of £1.1 million, and underthe terms of the deal, Begbies Traynor has the option to pay an additional sumof £700,000 in cash or by issuing 424,242 shares at £1.65 per share in theGroup. There will be further additional payments subject to the new partnersmeeting robust turnover targets. In its last trading year, Wilson Pitts achievedfee income in the region of £1.8 million. The directors of Begbies Traynor conclude that the acquisition should enhanceearnings per share of the Group, both initially and after any additionalconsideration is paid. Wilson Pitts was founded in Leeds in 1989, and has its roots serving theYorkshire business community. While it is a provider of general corporate andpersonal insolvency services, it has particularly strong contacts and experiencein the residential care home market. However, in order to continue to expand,Wilson and Pitts partners chose to join Begbies Traynor for the opportunity towork on larger, more technically challenging cases which they recognised wereonly possible from high street bank referrals, a network from which Begbiesalready receives considerable business. The new Leeds office is now one of three main Group offices serving theYorkshire region. Collectively, these offices have eight licensed insolvencypractitioners and over 45 professional and support staff, and are responsiblefor around £6 million in total annual fee income. This latest acquistion is part of the Group's strategy to expand its range ofservices and presence in the mid-corporate and personal insolvency markets. The Group is expected to announce its preliminary results for the year ended 30April 2006 on Monday 3rd July 2006. Ric Traynor, Executive Chairman of Begbies Traynor, comments: "With three main offices in Yorkshire we now have strong representation in thisregion. Finding a high quality acquisition in this part of the country was a keygoal this year. We are therefore delighted to welcome Julian and David and theircolleagues to the Group." Enquiries, please contact: Ric Traynor Neil Boom/Tanya FenessExecutive Chairman Gresham PR Ltd.Begbies Traynor Group plc 020 7404 90000161 839 0900 Mike SawbridgeDirector of Corporate FinanceShore Capital Stockbrokers Limited0151 600 3722 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 business insolvency management and is becomingincreasingly active in the area of personal insolvency. It also offers servicesin corporate rescue and investigation services and has entered the field ofcorporate finance. In November 2005, the Group entered the rapidly-expanding volume personalinsolvency market via the acquisition of W3 Debt Solutions, a firm specialisingin providing advice and practical support to individuals in debt. The Group has grown to its current network of 32 nationwide offices ranging fromScotland to the South West of England, with 350 operatives. The Companycontinues to pursue its strategy of organic development, coupled with theacquisition of specialist knowledge of both individuals and firms, to furtherincrease its market share in its core 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 60 licensed insolvency appointment takers, some 225 feeearning staff and 65 in support and administration. The Group operates from 32locations of which 5 are regional offices, a further 18 are full offices and 9are satellites. Business Activities The core business of the Group is the formal administration of insolvenciesincluding receiverships, liquidations, administrations, company voluntaryarrangements and business-related personal insolvencies. The Group has extendedits activities into a range of consultancy services including corporate rescue,credit management, forensic and investigation services and corporate finance. This information is provided by RNS The company news service from the London Stock Exchange