Last checked at 20 Nov 2023 07:00
20 November 2023
Begbies Traynor Group plc
Half-year trading update
"Further growth in first half - confident of delivering full year expectations"
Begbies Traynor Group plc (the 'company' or the 'group'), the professional services consultancy, announces an update on trading for the six months ended 31 October 2023.
Summary - performing well with double digit growth
· Strong financial performance
o Revenue and adjusted operating profit expected to increase by c.13%, with a good mix of organic and acquired growth
o Adjusted PBT expected to increase by c.10%, having absorbed increased finance costs
o Positive cash position with net cash of £1.1m at 31 October 2023, resulting from strong free cash flow in the six months (31 October 2022: net debt of £2.4m)
· Confident of delivering market expectations* for the full year to 30 April 2024, extending our strong financial track record of growth
Operational highlights - growth across both divisions
· Insolvency and financial advisory
o Insolvency teams remain busy with increased year on year activity levels
§ Added capacity through recruitment for further growth
§ Market leading position maintained (by volume) with national market volumes continuing to increase in current interest rate and inflation environment
o Financial advisory: as anticipated reduced M&A activity in the period mitigated by advice provided on refinancing and restructuring solutions
· Property advisory and transactional services
o Valuations team (predominantly providing services to lenders) benefitting from breadth of expertise and advice provided
o Projects and development activity through building consultancy teams continues to expand with increased activity levels across its broad client base
o Higher level of auction volumes (sales of property, plant and machinery) partially mitigated weaker transactional markets in agency and business sales
Acquisitions
Acquisitions completed since the beginning of the financial year:
· Banks Long & Co, a general chartered surveyors practice, based in Lincoln;
· Cardiff-based insolvency team from Jones Giles & Clay, who joined the group's existing Cardiff office; and
· Andrew Forbes, a property valuation practice based in Bristol.
All three of these earnings accretive acquisitions align well with the group's current service offerings whilst strengthening our existing regional presence. Integration is proceeding well with trading performance in line with expectations.
Half year results presentation
The group will report its half year results for the six months ended 31 October 2023 on Monday 11 December 2023. There will be a webcast and conference call for analysts at 8:30am. This will be hosted by Ric Traynor, Executive Chairman and Nick Taylor, Group Finance Director.
Please contact begbies@mhpgroup.com or on 020 3128 8100 if you would like to receive details.
* current range of analyst forecasts for adjusted PBT of £21.9m-£22.5m (as compiled by the group)
Ric Traynor, Executive Chairman of Begbies Traynor Group plc, commented:
"We have had a good half year with encouraging activity levels across the group, resulting in double digit growth in both revenue and profitability. At the same time, we have continued to invest for future growth, having completed three acquisitions in the financial year to date in line with our strategy to enhance our service offering and regional coverage.
"We remain confident of delivering market expectations* for the full year, extending our strong financial track record of growth. With 80% of income generated from counter-cyclical and defensive activities, and a strong balance sheet, we remain well-positioned to continue investing in and growing the business."
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)
Emma Gabriel / Harry Pardoe
Shore Capital 020 7408 4090
(Joint Broker)
Malachy McEntyre / Mark Percy / Anita Ghanekar / James Thomas
MHP 020 3128 8100
Reg Hoare / Katie Hunt / Charles Hirst begbies@mhpgroup.com
Information on Begbies Traynor Group can be accessed via the group's website atwww.ir.begbies-traynorgroup.com