REG - Begbies Traynor - Acquisition

Begbies TraynorAnnouncement

08/11/2023 07:00

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RNS Number : 7651S  Begbies Traynor Group PLC  08 November 2023

8 November 2023

Begbies Traynor Group plc

 

Acquisition

 

Further expansion of Eddisons' regional footprint and offering

 

Begbies Traynor Group plc (the "group"), the business recovery, financial
advisory and property services consultancy, today announces that it has
completed the acquisition of Andrew Forbes Limited (Andrew Forbes).

 

Andrew Forbes is a firm of chartered surveyors employing 18 staff in Bristol
and operating across the South West, founded in 1995. The business will
integrate with Eddisons, the group's property division.

 

The Andrew Forbes team provides commercial valuation and building consultancy
services, which aligns with the group's current service offering and
strengthens our existing regional presence across the South West.

 

In its financial year ended 31 March 2023, Alexander Forbes generated revenue
of £1.7m (unaudited) and normalised pre-tax profits of £0.25m (when reported
on the same basis as the group). Trading currently is projected to maintain
this level in the current financial year. It had net assets of £0.2m
(including £0.3m net cash) at 31 March 2023.

 

Reasons for and benefits of the acquisition

 

The group's overall strategy is to increase the scale and quality of its
businesses both organically and through value-accretive acquisitions, thereby
delivering strong, sustainable financial performance.

 

Our strategy in property services is to enhance and broaden our service
offerings and geographical coverage. Since the creation of the division
through the acquisition of Eddisons in December 2014, the group has built a
strong track record of acquisitions that have met these criteria. This
strategy has increased the scale of the division from annual revenue of c£13m
at inception to a current run rate of c£40m, demonstrating resiliency of
earnings in a challenging economic environment, strong growth and
profitability whilst enhancing the group's earnings.

 

The acquisition is in line with our strategy, with the Andrew Forbes team
complementing our existing national valuations team, which will comprise over
100 people following this transaction.

 

Principal terms of the acquisition

 

The acquisition consideration is structured as follows, based on current
levels of financial performance and on a cash free, debt free basis:

 

·    Initial cash consideration of £0.5m;

·    Earn out of up to £0.5m, payable in cash, subject to maintaining
profits in the three year period post completion.

 

This gives a maximum consideration of £1.0m (on a cash free debt free basis).

 

The cash consideration will be met from the group's existing financial
resources, with significant headroom available for further acquisitions and
investment.

 

Anthony Spencer, Director at Eddisons, commented:

 

"I am very pleased to welcome the Andrew Forbes team to Eddisons. They have an
excellent regional reputation which complements Eddisons existing strength in
valuations and the South West. We continue to seek further opportunities for
expansion across the UK."

 

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

 

"The acquisition of Andrew Forbes is in line with our strategy to develop our
property advisory and transactional services division, by increasing both its
scale and market position, as well as the scope of its service offering and
geographical coverage.

 

"The Andrew Forbes team is a long standing and successful business, and we are
looking forward to working with them."

 

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 (Joint
Broker)
020 7408 4090

Malachy McEntyre / Mark Percy / Anita Ghanekar / James Thomas

 

MHP
 
020 3128 8567

Reg Hoare / Katie Hunt
                                           begbies@mhpgroup.com
(mailto:begbies@mhpgroup.com)

 

 

Information on Begbies Traynor Group can be accessed via the group's website
at

www.ir.begbies-traynorgroup.com

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