Last checked at 19 May 2022 07:00
19 May 2022
Begbies Traynor Group plc
Year end trading update
Notice of full year results
Results expected to be comfortably ahead of market expectations
Begbies Traynor Group plc (the 'company' or the 'group'), the business recovery, financial advisory and property services consultancy, announces an update on trading for its financial year ended 30 April 2022.
Summary
· Results expected to be comfortably ahead of market expectations* and significantly ahead of prior year:
o Revenue** expected to increase by c.30% to c.£109.5m (2021: £83.8m)
o Adjusted PBT** expected to increase by c.55% to c.£17.8m (2021: £11.5m)
· Reflects material increase in scale and scope of the group since 2021 following acquisitions
· Maintains strong track record of growth in both revenue and profitability, with improved operating margins in the year
· Net cash** of £4.7m at 30 April 2022 (2021: £3.0m)
* market consensus (as compiled by the company) for revenue of £105.1m and adjusted PBT of £17.2m
** all numbers in this statement subject to audit
Divisional performance
Business recovery and financial advisory
· Strong financial performance with segmental revenue growth of c.35% at improved margins
· Growth driven by acquisitions completed since 2021 which have delivered strong results and integrated well into the business
· Activity levels increased over the year resulting from increased volume of liquidations
· Insolvency numbers nationally returned to pre-pandemic levels as government support measures removed:
o Corporate insolvencies* increased by 50% to 16,648 (2021: 11,134)
o Increase to date from liquidations (typically smaller companies) rather than administrations (typically larger and more complex instructions)
· MAF Finance Group (acquired May 2021) traded well in its first year in the group, with growth in line with earn out thresholds
· A successful year for corporate finance with increased number of deal completions
*Source: The Insolvency Service quarterly statistics on the number of corporate insolvencies (excluding compulsory liquidations) in England and Wales on a seasonally adjusted basis for 12 month period to 31 March.
Property advisory and transactional services
· Good financial performance with segmental revenue growth of c.19% at improved margins
· Acquisitions of Daniells Harrison (January 2022) and Fernie Greaves (October 2021) expanded geographical coverage and traded in line with expectations
· Strong organic performance reflecting recovery from lockdown impacted prior year
Liquidity
· Strong operational cash flow resulting in improved financial position with a net cash balance of £4.7m at 30 April 2022 (2021: £3.0m)
o Cash balance stated after paying £7.5m of acquisition and earn outs in the year
· HSBC facilities* extended to 31 August 2024
o Significant headroom in facilities to fund organic investment and acquisition opportunities
* Facilities comprise a £25m unsecured, committed revolving credit facility together with a £5m uncommitted acquisition facility
Notice of results
The group will report its final results for the year ended 30 April 2022 on Tuesday 19 July 2022. There will be a virtual analyst presentation at 9.00am on the day. Please contact begbies@mhpc.com or on 020 3128 8567 if you would like to receive details.
Ric Traynor, Executive Chairman of Begbies Traynor Group plc, commented:
"We performed strongly in the financial year with results comfortably ahead of market expectations and significantly ahead of the prior year. This reflected the material increase in scale and scope of the group since 2021 following our acquisitions and investment in both divisions.
"Our strong financial position has further improved and we retain substantial resources to make further acquisitions to build our scale and range of complementary services. We have started the new financial year confident in our outlook and anticipating a year of further progress."
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)
Adam James / Patrick Dolaghan
Shore Capital 020 7408 4090
(Joint Broker)
Malachy McEntyre / Mark Percy / Anita Ghanekar / James Thomas
MHP Communications 020 3128 8567
Reg Hoare / Katie Hunt / Pauline Guenot begbies@mhpc.com
Information on Begbies Traynor Group can be accessed via the group's website atwww.begbies-traynorgroup.com/investor-relations