Good morning!

Company news is dead today so let's circle back and look at a few miscellanous things from earlier in the week.

In the end, I covered:

Begbies Traynor (LON:BEG)

  • Share price: 87.8p (+3%)
  • No. of shares: 126 million
  • Market cap: £111 million


Another acquisition by inslolvency practitioner Begbies, hot on the heels of the one on Monday which I commented on.

Monday's target was a business agent, Ernest Wilson.

Today's target is ALJ, a London-based "insolvency and business recovery practice." Would it be fair to think of it as a "mini-Begbies"?

Here is its website. There are 23 individuals on the "Our people" page.


The price is £2.35 million up front (mostly cash), and then another £4 million in defcon over five years. Max defcon will only be paid "in the event of significant growth.

Comparison to earnings: ALJ earnied PBT of £0.9 million in the most recent financial year.

CEO comment

"This acquisition is in line with our strategy to increase the scale and market share of our market-leading insolvency practice."


Since July, Begbies has raised £8.3 million in a placing and acquired three companies. Begbies thinks that the aggregate impact of these actions will be earnings enhancing, both in the current financial year (FY April 2020) and in future years.

My view

Begbies is picking up companies on the cheap - good news for shareholders.

I don't think this acquisition will change anybody's view. It's a continuation of the existing strategy.

So if you are comfortable investing in this sector and/or you think that the economy is going provide a lot of work for insolvency practitioners in the next few years, then this share could be of interest.

I continue to view this share as an interesting hedge against recession.

It gets rated as a High Flyer by the algorithms.


  • Share price: 377p (-0.4%)
  • No. of shares: 311 million
  • Market cap: £1,173 million

Half-year Report (yesterday)

Please note that I have a long position in C&C.

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