REG - Begbies Traynor - Trading Update and Notice of half year results

Begbies TraynorAnnouncement

18/11/2021 07:00

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RNS Number : 6993S  Begbies Traynor Group PLC  18 November 2021

18 November 2021

Begbies Traynor Group plc

Trading update

Notice of half year results

Begbies Traynor Group plc ("the group"), the business recovery, financial
advisory and property services consultancy, announces an update on trading for
the six months ended 31 October 2021. All figures are unaudited.

The group is pleased to report a strong financial performance in the six
months. Group revenue increased to c.£52m (2020: £37.5m), with adjusted
profit before tax growing to c.£8m (2020: £5.0m), principally reflecting the
benefit of acquisitions completed since January 2021.

The group has maintained its strong financial position with net cash of £1.2m
at 31 October 2021 (30 April 2021: £3.0m, 31 October 2020: £0.7m) and
significant levels of headroom within our committed bank facilities.
Acquisition and deferred consideration payments of c.£3m were made in the
period.

As previously guided, we expect our results will have a second half weighting
as we anticipate an increase in insolvency activity over the remainder of our
financial year (to 30 April 2022). Overall, we remain confident of delivering
market expectations* for the full year, which will represent a year of
significant growth.

Insolvency market

The insolvency market has been suppressed since March 2020 due to Government
support measures during the pandemic. However, since May 2021, the Insolvency
Service has reported** month on month increases in insolvency appointments
nationally as these support measures have been removed.

The increases to date have predominantly been in liquidations (which typically
represent insolvencies of smaller companies), where the volume of appointments
has now returned to pre-pandemic levels. We have increased our share of this
market segment in the year by volume. Although the number of administrations
(which typically involve larger and more complex instructions) has increased
in recent months, they are currently significantly below pre-pandemic levels.

Divisional performance

The business recovery and financial advisory division has performed well in
the period. The prior year acquisitions have performed in line with
expectations and have been integrated as planned. Organic activity levels have
reflected the market dynamics in the six months as noted above.

Our corporate finance team had a successful six months of deal completions and
has a strong pipeline of transactions for the second half of our financial
year. The MAF Finance Group acquisition (completed in May 2021) has delivered
results in line with expectations, with synergy and cross selling
opportunities being identified as the business has been integrated into the
group.

The property advisory and transactional services division performed well and
achieved year on year growth in revenue and profit (inclusive of acquisitions)
from a normalised trading performance compared to the lockdown impacted
comparative period.

* current range of analyst forecasts for adjusted PBT of £17.0m-£18.5m (as
compiled by the group)

** Insolvency Service - monthly insolvency statistics October 2021 published
16 November 2021

Notice of results

The group will report its half year results for the six months ended 31
October 2021 on Tuesday, 14 December 2021. There will be a virtual analyst
presentation at 9:00am on the day. Please contact begbies@mhpc.com
(mailto:begbies@mhpc.com) or on 020 3128 8572 if you would like to receive
details.

 

 

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

"I am pleased to report a strong financial performance in the first six months
of our financial year, which is testament to the benefit and integration of
our recent acquisitions. We remain confident of delivering market expectations
for the full year, which will represent a year of significant growth and
ensures we are well placed to continue to invest in our successful growth
strategy."

 

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 8572

Reg Hoare / Katie Hunt / Florence
Mayo
begbies@mhpc.com (mailto:begbies@mhpc.com)

 

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