REG - Begbies Traynor Grp - Final Results
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RNS Number : 0718Q Begbies Traynor Group PLC 08 July 2025
8 July 2025
Begbies Traynor Group plc
Final results
for the year ended 30 April 2025
Tenth successive year of growth, with double digit increases in revenue and
EBITDA in the year
Begbies Traynor Group plc (the 'company' or the 'group'), the financial and
real estate advisory firm, today announces its final results for the year
ended 30 April 2025.
Financial highlights
2025 2024
£m £m
Revenue 153.7 136.7
Adjusted EBITDA(1) 31.7 28.5
Adjusted profit before tax(2) 23.5 22.0
Profit before tax 11.5 5.8
Free cash flow 19.4 12.4
Net cash (debt)(3) 0.9 (1.4)
Adjusted diluted EPS(2) (p) 10.5 9.9
Diluted EPS (p) 3.8 0.9
Proposed total dividend (p) 4.3 4.0
Financial highlights - double digit revenue and EBITDA growth, together with
increased cash generation
· Revenue growth of 12% (10% organic, 2% acquired)
· Adjusted EBITDA growth of 11%
· Proposed 8% increase in dividend represents the eighth
consecutive year of dividend growth
o Reflects board's confidence in the business and its prospects and
progressive dividend policy
· Robust financial position and significant levels of headroom in
committed bank facilities
o Free cash flow increased by 56%, better than expected
o Net cash position of £0.9m (2024: net debt of £1.4m) having made
acquisition and earn out payments of £9.4m, funded £1.6m of share buybacks
and paid dividends of £6.3m
o Well placed to continue investing in successful organic and acquisitive
growth strategy
Operational highlights - strong performance across both divisions with senior
hires to accelerate longer-term growth
· Business recovery and advisory
o Larger, higher value cases driving growth
o Market leading position maintained (by volume of appointments)
o Advisory business trebled in size since 2020 through organic growth and
M&A
o Significant growth in advisory revenue across restructuring, special
situations M&A and funding projects
· Property advisory
o Built on track record with strong revenue growth
o Growth in property auctions - now one of the leading property auction
houses in the country by number of lots
o Investment in senior hires across valuations, asset sales and consultancy
Current trading and outlook - confident of continuing track record of growth,
profit in line with market expectations(4)
· Expect positive momentum to drive revenue growth across the group
in the current year
o Encouraging activity levels and increased order book
o Expanded professional team
o Supportive market conditions
· Confident of delivering profit in line with market
expectations(4) as we continue to invest in the business
o Revenue at upper end of expectations(4) is expected to mitigate increasing
costs (ongoing organic investment, inflation and NI increases)
· Robust balance sheet underpins investment in organic growth
opportunities and acquisition pipeline
· Further update on trading will be provided at the annual general
meeting in September 2025
1 Adjusted EBITDA is operating profit before share based payments,
depreciation, amortisation and non-underlying items arising due to
acquisitions under IFRS.
2 Adjusted PBT is before non-underlying items arising due to
acquisitions under IFRS. Adjusted EPS excludes these items and the related tax
effect. The board believe that these adjusted performance measures provide
more meaningful information on the operating performance of the business.
3 Net cash (debt) includes cash and cash equivalents and borrowings
but excludes IFRS 16 lease liabilities.
4 Market expectations for FY26 (as compiled by the company) of
revenue £158.9m-£162.8m and adjusted PBT £23.7m-£25.0m.
Commenting on the results, Ric Traynor, Executive Chairman of Begbies Traynor
Group, said:
"I am pleased to report a further successful year for the group, representing
ten consecutive years of profitable growth, during which we have tripled the
size of the business with a six-fold increase in adjusted profit before tax.
Our results are ahead of original market consensus expectations in terms of
revenue, EBITDA and net cash, having been driven by strong levels of organic
growth delivered across our broad range of advisory services in both
divisions.
"Looking forward, activity levels are encouraging with positive momentum
across the group. We have increased the scale of our teams and market
conditions are supportive. We currently expect revenue will be at the upper
end of the range of market expectations, with a further year of profit growth
in line with expectations, as we continue to invest in growing the business.
"Overall, our broad range of advisory services, diversified client base and
growth opportunities, underpinned by our robust financial position, gives us
confidence in continuing our track record of growth in the new financial year
and beyond, progressing towards our medium-term revenue target of £200m."
There will be a webcast and conference call for analysts today at 9.00am.
Please contact begbies@mhpgroup.com if you would like to receive details.
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 / Harry Pardoe
Shore Capital
020 7408 4090
(Joint Broker)
Malachy McEntyre / Mark Percy / Anita Ghanekar / James Thomas
MHP
Group
07770 753 544
Reg Hoare / Katie Hunt / Charles
Hirst
begbies@mhpgroup.com
(mailto:begbies@mhpgroup.com)
Notes to editors
Begbies Traynor Group plc is a leading financial and real estate advisory firm
with over 1,300 colleagues operating from 45 locations across the UK, together
with four offshore offices. Our multidisciplinary professional teams include
insolvency practitioners, accountants, lawyers, funding professionals and
chartered surveyors.
We use our expertise to enhance, protect and realise the value of our clients'
businesses, assets and investments; providing strategic advice and solutions
that drive growth, mitigate risk, and deliver lasting value.
· Restructuring
o Business restructuring and turnaround; corporate and personal insolvency;
creditor services; contentious insolvency and asset recovery
· Financial advisory
o Forensic services; debt and capital advisory; lender advisory; receivables
management
· Deal advisory
o Special situations M&A, corporate finance; transaction services
· Funding solutions
o Asset finance, real estate finance, residential mortgages, commercial
finance
· Valuations and asset advisory
o Property, business and asset valuations; asset advisory, restructuring and
recovery; lease advisory
· Agency and auctions
o Property agency; business and asset sales; property auctions
· Projects and developments
o Building consultancy; public sector property solutions; transport planning
and design
· Property management and insurance
o Commercial property management; vacant property services; insurance
broking
Further information can be accessed via the group's website at
ir.begbies-traynorgroup.com.
CHAIRMAN'S STATEMENT
INTRODUCTION
I am pleased to report to shareholders on a further successful year for the
group, in which we have continued to execute our proven growth strategy -
indeed we have now reported ten consecutive years of profitable growth. The
results for the year, which are ahead of original market consensus
expectations in terms of revenue, EBITDA and net cash, were driven by strong
levels of organic growth delivered across our broad range of advisory services
in both divisions.
Our strategy of investing in organic development and earnings enhancing
M&A has resulted in a diversified and resilient business. In ten years we
have tripled the size of the business with a six-fold increase in adjusted
profit before tax. Building on this track record, we have continued to make
good progress towards our medium-term revenue target of £200m.
Business recovery has continued to grow organically in the year with increased
activity levels, notably in larger, higher value cases. It remains the group's
largest service line (c.55% of group revenue) and retains its leadership
position in the UK market. We are ranked number one by overall volume of
corporate appointments and second nationally for administrations. We have
expanded the team in the year through both organic recruitment and the
additions of White Maund and West Advisory, which have integrated well into
existing offices. With an increased order book on our appointed insolvency
cases, we are well placed to continue delivering growth.
Financial advisory continued to develop its service offering during the year,
reporting significant organic growth. We have been appointed to advise on
national and international restructuring projects and have increased our fee
income from special situations M&A, which has mitigated a weak corporate
finance market. Our funding and debt advisory team had a successful year with
increased completions across both real estate and asset finance projects. We
have continued to expand in the year with senior hires across forensics, debt
advisory, restructuring and financial advisory, which positions the team well
for further growth in the new financial year.
Property advisory reported strong growth in the year from a combination of
organic development and the full year impact of prior year M&A. We have
reported significant growth from property auctions, benefitting from the
investments we have made in recent years, whilst continuing to develop our
service offering. We have made senior hires across our core disciplines of
valuation, asset sales and consultancy in the year and are well placed to
continue delivering growth.
We continue to support organic growth across the group through investing in
technology, to enhance processes and improve efficiency, and in learning and
development support for our colleagues. We will continue to focus on driving
efficiencies in the way we work.
The business remains highly cash generative, with a marked increase in free
cash flow in the year to £19.4m (2024: £12.4m). We ended the year with net
cash of £0.9m (2024: net debt of £1.4m), having made acquisition and earn
out payments of £9.4m, funded £1.6m of share buybacks and paid dividends of
£6.3m. This cash generation has enabled us to propose an 8% increase in the
total dividend for the year, representing our eighth consecutive year of
dividend growth.
Our cash generation, combined with our substantial debt facilities, provides
us with the flexibility to execute our strategy to continue to grow our scale
and range of services both organically and through acquisition.
RESULTS
Group revenue in the year increased by 12% to £153.7m (2024: £136.7m), 10%
of which was organic. Adjusted EBITDA(1) increased by 11% to £31.7m (2024:
£28.5m). Adjusted profit before tax(2) increased by 7% to £23.5m (2024:
£22.0m). Statutory profit before tax was £11.5m (2024: £5.8m).
Adjusted diluted earnings per share(2) increased by 6% to 10.5p (2024: 9.9p).
Diluted earnings per share was 3.8p (2024: 0.9p).
Net cash(3) on 30 April 2025 was £0.9m (2024: net debt of £1.4m).
1 Adjusted EBITDA is operating profit before share based payments,
depreciation, amortisation and non-underlying items arising due to
acquisitions under IFRS.
2 Adjusted PBT is before non-underlying items arising due to
acquisitions under IFRS. Adjusted EPS excludes these items and the related tax
effect. The board believe that these adjusted performance measures provide
more meaningful information on the operating performance of the business.
3 Net cash (debt) includes cash and cash equivalents and borrowings
but excludes IFRS 16 lease liabilities.
DIVIDEND
The board is pleased to recommend (subject to shareholder approval at the
company's annual general meeting scheduled for 18 September 2025) an 8%
increase in the total dividend for the year to 4.3p (2024: 4.0p), representing
our eighth consecutive year of dividend growth. This comprises the interim
dividend already paid of 1.4p (2024: 1.3p) and a proposed final dividend of
2.9p (2024: 2.7p).
This reflects the board's confidence in the group's financial position and
prospects, whilst retaining capacity for our continued organic and acquisitive
growth strategy. We remain committed to our long-term progressive dividend
policy, which takes account of the group's earnings growth, our investment
plans and cash requirements, together with the market outlook.
The final dividend will be paid on 6 November 2025 to shareholders on the
register on 10 October 2025, with an
ex-dividend date of 9 October 2025.
STRATEGY
We have a proven growth strategy which we have executed successfully since
2014. We believe this strategy will continue to enhance shareholder value
through the delivery of strong, sustainable financial performance, building on
our progress in recent years.
Organic growth will continue to be targeted through:
· retention and development of our existing colleagues;
· recruitment of new talent;
· enhanced cross-selling of our service lines and expertise to our
wider client base; and
· investment in technology and processes to enhance working
practices and improve the service to our clients.
Our acquisition strategy is to target earnings-accretive acquisitions in both
existing and complementary service lines, to enhance our market share,
expertise and geographical coverage, and continue developing the group.
Overall, we believe there are attractive opportunities for the group to grow
and consolidate in its chosen markets, which remain fragmented and offer
attractive financial returns.
PEOPLE
The continuing success of the group is reliant on the hard work and dedication
of our colleagues. We have significantly increased the number of our
colleagues to over 1,300 on 30 April 2025 from 740 in April 2020, through
successfully integrating acquisitions and recruiting high quality
professionals. This approach has enhanced our entrepreneurial culture and
delivered material growth. This is evidenced by the quality of advice and
service we consistently deliver to our clients and our high levels of
colleague retention.
I would like to thank all of our colleagues for their contribution to the
group and at the same time welcome all those who have joined the group over
the last twelve months.
SUSTAINABILITY
The board is committed to developing the group in a sustainable way for the
benefit of all our stakeholders. We aim to have a positive impact for our
colleagues and the communities we serve; to operate with a culture of strong
governance and responsible behaviour; and to minimise our impact on the
environment.
We have continued to enhance our colleague benefits and well-being support in
the year and our colleagues can use volunteering days to support local
charities and community groups.
We are committed to maintaining high standards of corporate governance. We
recognise that a positive culture, together with a robust approach to
governance, is key to the success of the organisation. Many of our service
lines are regulated by externally governed codes of practice and ethical
behaviour, which are reinforced by group policies.
We have continued to make progress across the business to reduce our overall
environmental impact, which has included refreshes to our IT estate, reducing
the use of consumables and increased recycling of end of life assets.
Further information on our sustainability policies and progress is detailed in
the group's annual report and accounts.
BOARD CHANGE
In January 2025 we were sad to announce the death of Graham McInnes, extending
our deepest sympathies to his family and friends. Graham joined the board in
2004 and was a key part of the management team which listed the company on
AIM. From July 2012, he served as a non-executive director and member of the
audit and remuneration committees, together with being the senior independent
non-executive director.
Graham made a huge contribution to the company and the board. I worked with
Graham for over 30 years and he was both a friend and gifted colleague whose
experience and understanding of financial and commercial matters was
invaluable. Both the board and I will miss his wise counsel, vast experience
and friendship.
John May has succeeded Graham as the senior independent non-executive
director.
OUTLOOK
We have started the new year with encouraging activity levels and positive
momentum across the group. We anticipate continuing growth in the new
financial year, driven by the increase in scale of our teams, including the
recruitment of senior fee earners, together with the visibility of fees on
current instructions, larger and higher value cases, and supportive market
conditions. We currently expect revenue will be at the upper end of the range
of market expectations(1), mitigating increasing costs (ongoing organic
investment, inflation and NI increases), and resulting in a further year of
profit growth in line with expectations(1), as we continue to invest in
growing the business.
Our robust balance sheet and cash generation underpin our capacity to continue
to invest in further organic growth initiatives whilst progressing our
pipeline of acquisitions.
Overall, our broad range of advisory services, diversified client base and
growth opportunities, gives us confidence of continuing our track record of
growth in the new financial year and beyond, progressing towards our
medium-term revenue target of £200m.
We will provide an update on trading at the annual general meeting in
September 2025.
1 Market expectations for FY26 (as compiled by the company) of
revenue £158.9m-£162.8m and adjusted PBT £23.7m-£25.0m
Ric Traynor
Executive chairman
8 July 2025
BUSINESS REVIEW
OPERATING REVIEW
Operating result
Strong financial performance in the year with revenue increasing by £17.0m to
£153.7m (2024: £136.7m), an overall increase of 12% (10% organic, 2%
acquired). Operating profits increased by £2.0m (8%) to £25.9m (2024:
£23.9m).
Operating performance by segment is detailed below:
2025 2024 % growth
£m £m
Revenue
Business recovery and advisory 107.3 96.4 11% (11% organic)
Property advisory 46.4 40.3 15% (7% organic)
153.7 136.7 12% (10% organic)
Operating profit
Business recovery and advisory 28.4 25.5 11%
Property advisory 7.8 7.6 3%
Group services (10.3) (9.2) 12%
25.9 23.9 8%
Margins
Segmental margins
· Business recovery and advisory 26.5% 26.5%
· Property advisory 16.8% 18.9%
Group services costs as % of revenue 6.7% 6.7%
Operating margins 16.9% 17.5%
Operating margins were 16.9% (2024: 17.5%) reflecting:
· business recovery and advisory margins in line with the prior
year reflecting improved activity levels in business recovery, offset by a
weak corporate finance market and investment in our advisory services;
· property advisory margins normalised following additional
consultancy fees earned in the prior year (as previously reported) together
with the cost of organic investment in senior hires to accelerate longer-term
growth;
· group services costs as a percentage of revenue maintained
despite inflationary cost pressures.
Markets
The marketplace for our advisory services continues to provide a positive
environment for developing and growing the group.
Insolvency
Corporate insolvencies in the past 12 months have been slightly lower than the
previous year but have remained high relative to historical levels. There were
23,969 corporate appointments in the 12 months ended 30 April 2025(1) (2024:
25,408). The total number of administrations (which typically involve larger
and more complex instructions) in the 12 month period was 1,549 (2024: 1,663),
which remains below the pre-pandemic levels in 2019 of c.1,800 appointments.
Commercial property
The property advisory business has benefitted from resilient market activity
levels. In the 12 months ended 30 April 2025 there were 125,180 UK
non-residential property transactions(2) (2024: 119,270), with the growth
driven by a spike in transaction levels in October 2024 prior to the UK
budget. This extends the period of stable transaction levels experienced since
2021, albeit this remains below pre-pandemic levels. In addition, lending to
UK real estate SMEs(3) increased to £62.4bn at 31 March 2025 (2024:
£58.9bn).
(1. Insolvency Service statistics on the number of corporate
insolvencies in England and Wales on a seasonally adjusted basis for the 12
months ended 30 April)
(2. HMRC UK monthly property transactions commentary
(seasonally adjusted) issued 27 June 2025)
(3. Bank of England Bankstats tables showing loan amounts
outstanding to UK small and medium-sized enterprises of which buying, selling
and renting of own or leased real estate (ZKP5))
Business recovery and advisory
Our business recovery team had a successful year with revenue increasing by 5%
to £83.7m (2024: £79.5m), with the growth driven by increased activity on
larger, higher value cases. We remain the UK market leader by volume of
appointments and the continuing growth in the business is driven by our
extensive UK coverage, enhanced market reputation for larger and more complex
cases and our well-established digital marketing expertise.
We have continued to grow our team in the year through organic recruitment and
the additions of White Maund (December 2024) and West Advisory (March 2025),
which have integrated well into existing regional offices.
Our insolvency order book (including both contingent and non-contingent fees)
increased to £78.6m (30 April 2024: £71.9m). The non-contingent element
increased to £39.2m (30 April 2024: £36.3m). This increase was driven by
both new insolvency appointments during the year and positive progress on
prior year appointments, as well as larger and higher value cases.
In addition to our extensive UK office network we have continued to develop
our offshore presence, including the recruitment of a new partner in the
British Virgin Islands (BVI). The offshore team operate from offices in
Jersey, Guernsey, Gibraltar, Isle of Man and the BVI under the Begbies Traynor
brand, and are advising on both local and multi-jurisdiction appointments.
Our advisory teams reported significant growth in the year with revenue
increasing by 40% to £23.6m (2024: £16.9m). This results from investment in
recent years to develop our range of complementary advisory services and
enhance the advice and service we provide to our clients. We have trebled the
size of the business since 2020 through a combination of organic growth and
M&A.
The strong performance in the year is from advisory fees on a number of
national and international restructuring projects, together with increased
special situations M&A fees which mitigated a weak corporate finance
market. It was also a successful year for our funding solutions team, with
increased fees from successful real estate and asset finance assignments.
We have continued to invest in the team with senior hires in forensics, debt
advisory, restructuring and financial advisory. This expanded team will
continue to develop and enhance our reputation for larger and more complex
instructions across both formal insolvency and financial advisory. On these
appointments, we are able to deliver the best value to stakeholders from
leveraging our broad range of expertise.
The team has increased by 66 (9%) to 798 since the start of the financial
year.
Property advisory
Our property advisory team built on its track record with revenue growth of
15% to £46.4m (2024: £40.3m).
We have seen strong growth in the year from property auctions. We are now one
of the leading property auction houses in the country by number of lots. This
reflects the benefit of investment in recent years including the prior year
acquisition of SDL Property Auctions in December 2023, which increased our
geographic coverage from the north of England into the midlands. The increased
scale of our offering and enhanced business development continues to drive
growth in lot numbers across both commercial and residential sales.
We reported increased revenue from our valuations team following the prior
year acquisition and integration of the Andrew Forbes valuation practice in
November 2023. Organic activity levels were robust, reflecting the stable
market environment.
We have continued to develop our service offerings in the year, which has
included our public sector sustainability and decarbonisation consultancy
team. This has been an investment over the last financial year and having
completed a number of tenders, the team has now secured an order book of
instructions which will commence in the new financial year.
We have also continued to grow our team across our core disciplines of
valuations, asset sales and consultancy with an increase of 29 (7%) to 471
since the start of the financial year.
People and processes
The group has 1,346 colleagues at 30 April 2025, an increase of 8% from 1,250
at the start of the financial year.
The average number of full-time equivalent (FTE) colleagues over the year
increased due to both organic investment and prior year acquisitions. Over the
last year, the number of fee-earning colleagues increased by 13% to 1,034.
2025 2024
Business recovery Property advisory Group services Total Business recovery and advisory Property advisory Group services Total
and advisory
Fee earners 642 392 - 1,034 591 328 - 919
Support teams 68 14 69 151 63 25 67 155
Total 710 406 69 1,185 654 353 67 1,074
We have continued to invest in our people, notably through continuing to
enhance our learning and development support. During the year, we introduced a
new leadership development programme for our senior business leaders and
commenced a series of 'live-learns' providing convenient remote training
sessions on core skills. This included maximising the benefit of Microsoft
tools, using LinkedIn for business development and the opportunities of AI
across the workplace. We have gained CPD accreditation for a number of our
courses which enables our professionals to complete an element of their
professional development on bespoke in-house courses.
In the year, we launched our fourth save as you earn scheme for all qualifying
colleagues.
We have continued to make progress in our process improvement initiatives
across our operations to identify and embed improved ways of working, making
the best use of technology.
FINANCE REVIEW
Financial summary
2025 2024
£m £m
Revenue 153.7 136.7
Adjusted EBITDA 31.7 28.5
Share-based payments (1.3) (0.6)
Depreciation (4.5) (4.0)
Operating profit (before non-underlying items) 25.9 23.9
Finance costs (2.4) (1.9)
Adjusted profit before tax 23.5 22.0
Non-underlying items (12.0) (16.2)
Profit before tax 11.5 5.8
Tax on profits on ordinary activities (5.2) (4.3)
Profit for the year 6.3 1.5
Adjusted EBITDA increased by 11% to £31.7m (2024: £28.5m) with margins of
20.6% (2024: 20.8%). Non-cash costs (share-based payments and depreciation)
increased to £5.8m (2024: £4.6m).
Finance costs increased to £2.4m (2024: £1.9m) due to higher levels of net
debt following the prior year purchase of own shares and higher IFRS 16
interest charges.
Adjusted profit before tax increased by 7% to £23.5m (2024: £22.0m).
Non-underlying items
The non-underlying items detailed below all arise due to acquisition
accounting.
Under IFRS, acquisition consideration which is contingent on the selling
shareholders remaining with the group is charged to the statement of
comprehensive income, rather than being capitalised within non-current assets.
These contingent payments, agreed in the terms of the sale and purchase
agreements, are designed to preserve the value of goodwill and customer
relationships acquired in the business combinations. As a result of this
treatment of consideration, negative goodwill arises on a number of
acquisitions which is credited to income in the year of acquisition.
At 30 April 2025, the remaining value of acquisition consideration (from prior
year transactions) to be charged to the statement of comprehensive income in
future years is £13m, of which £7.6m is chargeable in the year ending 30
April 2026.
2025 2024
£m £m
Acquisition consideration (deemed remuneration in accordance with IFRS 3) 8.6 11.1
Negative goodwill (0.1) (0.8)
Transaction costs - 0.3
Amortisation of intangible assets recognised on acquisition accounting 3.5 5.6
12.0 16.2
Tax
The overall tax charge for the year was £5.2m (2024: £4.3m) as detailed
below:
2025 2024
Profit before tax Tax Profit after tax Effective rate Profit before tax Tax Profit after tax Effective rate
£m £m £m £m £m £m
Adjusted 23.5 (6.1) 17.4 26% 22.0 (5.7) 16.3 26%
Non-underlying items:
Amortisation (3.5) 0.9 (2.6) 26% (5.6) 1.4 (4.2) 25%
Other non-underlying items (8.5) - (8.5) - (10.6) - (10.6) -
Statutory 11.5 (5.2) 6.3 45% 5.8 (4.3) 1.5 74%
The group's adjusted tax rate was 26% (2024: 26%).
The statutory tax rate reflects the tax treatment of non-underlying items as
follows:
· Amortisation of acquired intangibles attracts a deferred tax
credit at 25% (2024: 25%);
· Other non-underlying items (acquisition consideration, negative
goodwill and transaction costs) are non-deductible as they are capital in
nature.
Earnings per share
Adjusted diluted earnings per share* increased by 6% to 10.5p (2024: 9.9p).
Diluted earnings per share increased to 3.8p (2024: 0.9p).
* See reconciliation in note 5
Acquisitions
In December 2024 the group acquired the trade and assets of White Maund, a
business recovery firm in Brighton. Initial cash consideration was £0.4m,
with a maximum earn out of £0.1m subject to maintaining financial performance
in the year post completion. In March 2025 we added the West Advisory business
recovery team based in the midlands.
The cash outflow from acquisitions and earn out payments in the year was
£9.4m, comprising earn outs from prior year acquisitions of £8.9m and
current year acquisition payments of £0.5m.
Liquidity
The group is in a robust financial position. At 30 April 2025, the group had
net cash of £0.9m (30 April 2024: net debt of £1.4m), represented by cash
balances of £7.9m (2024: £5.6m) net of drawn borrowing facilities of £7.0m
(2024: £7.0m). All bank covenants were comfortably met during the year.
The group's principal banking facilities at 30 April 2025 are unsecured and
provided by HSBC. They comprise a committed revolving credit facility ('RCF')
of £25m and an uncommitted accordion facility of £10m which were entered
into on 23 February 2024. The principal features of these facilities are
summarised as follows:
· RCF: £7.0m was drawn at 30 April 2025 (2024: £7.0m) - effective
interest rate of 7.8% (2024: 8.6%);
· accordion facility unutilised at 30 April 2025 (2024: unutilised);
· maturity date of February 2028, with a one-year extension option,
giving a potential maturity date of February 2029;
We have significant levels of headroom in our bank facilities.
Cash flow
Cash flow in the year is summarised as follows:
2025 2024
£m £m
Adjusted EBITDA 31.7 28.5
Working capital (0.8) (4.0)
Cash generated by operations 30.9 24.5
Tax (4.4) (6.7)
Interest (2.2) (2.0)
Capital expenditure (2.0) (1.5)
Capital element of lease payments (2.9) (1.9)
Free cash flow 19.4 12.4
Net proceeds from share issues 0.2 0.5
Purchase of own shares (1.6) (2.9)
Transaction costs - (0.3)
Acquisition consideration payments (net of cash acquired) (1) (9.4) (8.2)
Dividends (6.3) (5.9)
Net cash inflow (outflow) 2.3 (4.4)
The group remains strongly cash generative, with cash generated from
operations (before acquisition consideration payments) of £30.9m (2024:
£24.5m) resulting from the increased profits in the year and an improved
working capital position. Lock up(2) at 30 April 2025 reduced to 4.1 months
(30 April 2024: 4.2 months).
Tax payments in the year decreased to £4.4m (2024: £6.7m), due to certain
FY25 tax liabilities being prepaid in FY24, benefitting FY25 cash flow. The
capital element of lease payments increased to £2.9m (2024: £1.9m),
following the completion of rent free periods on several of the group's leased
properties.
Free cash flow in the period increased by 56% to £19.4m (2024: £12.4m).
Acquisition consideration payments of £9.4m comprise £8.9m of earn out
payments from prior year acquisitions and £0.5m in relation to current year
acquisitions. Following these payments, the estimate of future earn outs
payable is £12.2m (up to £1.6m of which can be settled in shares), which
will be satisfied by December 2027 of which £6.5m (up to £1.1m of which can
be settled in shares) is payable in the year ending 30 April 2026.
The purchase of own shares of £1.6m related to the share buyback programme
(announced on 21 October 2024) of £1.5m and EBT share purchases of £0.1m.
The share buyback completed on 7 November 2024 and the shares were
subsequently used to satisfy earn out obligations in respect of prior year
acquisitions.
( )
(1. Including deemed remuneration under IFRS3)
(2. Lock up determined by unbilled income and trade
receivables (net of impairment provision) less deferred income compared to TTM
revenue)
Net assets
At 30 April 2025 net assets were £82.0m (2024: £78.4m). The movement in net
assets reflects underlying total comprehensive income for the year of £17.4m
and credits to equity for share based payments and share issues of £5.2m
offset by the post-tax impact of non-underlying costs of £11.1m, dividends
paid of £6.3m and £1.6m in relation to shares acquired by the EBT.
Going concern
The group is in a robust financial position and has significant liquidity as
detailed above.
In carrying out their duties in respect of going concern, the directors have
completed a review of the group's financial forecasts for a period of two
years from the year end. This review included sensitivity analysis and stress
tests to determine the potential impact on the group of reasonably possible
downside scenarios. Under all modelled scenarios, the group's banking
facilities were sufficient and all associated covenant measures were forecast
to be met.
As a result, the directors have a reasonable expectation that the company and
the group have adequate resources to continue in operational existence for the
foreseeable future. Accordingly, the financial information in this statement
is prepared on the going concern basis.
Ric
Traynor
Nick Taylor
Executive
chairman
Group finance director
8 July
2025
8 July 2025
Consolidated statement of comprehensive income
2025 2024
£m Note Non-underlying Total Non-underlying Total
Underlying Underlying
Continuing operations
Revenue 2 153.7 - 153.7 136.7 - 136.7
Direct costs (86.0) - (86.0) (77.8) - (77.8)
Gross profit 67.7 - 67.7 58.9 - 58.9
Other operating income 0.4 - 0.4 0.5 - 0.5
Administrative expenses (42.2) (12.0) (54.2) (35.5) (16.2) (51.7)
Operating profit 25.9 (12.0) 13.9 23.9 (16.2) 7.7
Finance costs 4 (2.4) - (2.4) (1.9) - (1.9)
Profit before tax 23.5 (12.0) 11.5 22.0 (16.2) 5.8
Tax (6.1) 0.9 (5.2) (5.7) 1.4 (4.3)
Profit and total comprehensive income for the year 6.3 1.5
17.4 (11.1) 16.3 (14.8)
Earnings per share
Basic 5 4.0p 0.9p
Diluted 5 3.8p 0.9p
The profit, comprehensive income and earnings per share is attributable to
equity holders of the parent.
Consolidated statement of changes in equity
Capital redemption Own
Share Share Merger shares Retained Total
capital premium reserve reserve reserve earnings equity
£m £m £m £m £m £m £m
At 30 April 2023 7.7 30.0 27.9 0.3 - 18.4 84.3
Profit for the year - - - - - 1.5 1.5
Dividends - - - - - (5.9) (5.9)
Credit to equity for equity-settled share-based payments - - - - 0.5 0.5
-
Shares issued as consideration for acquisitions 0.1 - 0.4 - - - 0.5
Own shares acquired - - - - (2.9) - (2.9)
Other share options 0.2 0.5 - - - (0.3) 0.4
At 30 April 2024 8.0 30.5 28.3 0.3 (2.9) 14.2 78.4
Profit for the year - - - - - 6.3 6.3
Dividends - - - - - (6.3) (6.3)
Credit to equity for equity-settled share-based payments - - - - 1.3 1.3
-
Change from cash-settled to equity-settled share-based payments - - - - - 2.2 2.2
Own shares utilised for equity-settled share-based payments - - - - (2.8) -
2.8
Own shares acquired - - - - (1.6) - (1.6)
Own shares utilised as consideration for acquisitions - - - - 1.5 - 1.5
Shares issued for equity-settled share-based payments - 0.2 - -
- - 0.2
At 30 April 2025 8.0 30.7 28.3 0.3 (0.2) 14.9 82.0
Consolidated balance sheet
2025 2024
Note £m £m
Non-current assets
Intangible assets 69.1 72.4
Property, plant and equipment 3.0 2.2
Right of use assets 9.6 11.2
Trade and other receivables 7 2.8 2.8
84.5 88.6
Current assets
Trade and other receivables 7 70.0 63.3
Current tax receivable - 0.3
Cash and cash equivalents 7.9 5.6
77.9 69.2
Total assets 162.4 157.8
Current liabilities
Trade and other payables 8 (52.2) (50.0)
Current tax liabilities (1.0) -
Lease liabilities (2.8) (2.1)
Provisions (1.0) (0.9)
(57.0) (53.0)
Net current assets 20.9 16.2
Non-current liabilities
Borrowings (7.0) (7.0)
Lease liabilities (7.2) (9.5)
Provisions (2.7) (2.9)
Deferred tax (6.5) (7.0)
(23.4) (26.4)
Total liabilities (80.4) (79.4)
Net assets 82.0 78.4
Equity
Share capital 8.0 8.0
Share premium 30.7 30.5
Merger reserve 28.3 28.3
Capital redemption reserve 0.3 0.3
Own shares reserve (0.2) (2.9)
Retained earnings 14.9 14.2
Equity attributable to owners of the company 82.0 78.4
Consolidated cash flow statement
Notes 2025 2024
£m £m
Cash flows from operating activities
Cash generated by operations 9 30.9 24.5
Income taxes paid (4.4) (6.7)
Interest paid on borrowings (1.4) (1.3)
Interest paid on lease liabilities (0.8) (0.8)
Net cash from operating activities (before acquisition payments) 24.3 15.7
Transaction costs - (0.3)
Acquisition consideration payments (which are deemed remuneration under IFRS (8.9) (6.2)
3)
Net cash from operating activities 15.4 9.2
Investing activities
Purchase of property, plant and equipment (2.0) (1.4)
Acquisition consideration payments (0.5) (3.6)
Net cash acquired in acquisition of businesses - 1.6
Net cash used in investing activities (2.5) (3.4)
Financing activities
Dividends paid 6 (6.3) (5.9)
Proceeds on issue of shares 0.2 0.5
Purchase of own shares (1.6) (2.9)
Capital element of lease payments (2.9) (1.9)
Drawdown of loans - 2.0
Net cash used in financing activities (10.6) (8.2)
Net increase (decrease) in cash and cash equivalents 2.3 (2.4)
Cash and cash equivalents at beginning of year 5.6 8.0
Cash and cash equivalents at end of year 7.9 5.6
1. Basis of preparation and accounting policies
The results for the year ended 30 April 2025 have been prepared on the basis
of accounting policies consistent with those set out in the annual report to
shareholders of Begbies Traynor Group plc for the year ended 30 April 2024.
The group's financial statements for the year ended 30 April 2025 have been
prepared in accordance with International Accounting Standards ('IAS') in
conformity with the requirements of the Companies Act 2006 and International
Financial Reporting Standards ('IFRSs') adopted pursuant to Regulation (EC) No
1606/2002 as it applies in the European Union. Whilst the financial
information included in this announcement has been prepared in accordance with
IFRS, this announcement itself does not contain sufficient information to
comply with IFRS.
This financial information does not include all of the information and
disclosures required for full annual financial statements and does not
comprise statutory accounts within the meaning of section 435 of the Companies
Act 2006.
The comparative figures for the year ended 30 April 2024 do not comprise the
group's statutory accounts for that financial year. Those accounts have been
reported upon by the group's auditors and delivered to the Registrar of
Companies. The report of the auditors was unqualified, did not include a
reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report and did not contain statements under
section 498 (2) or (3) of the Companies Act 2006.
Statutory accounts for Begbies Traynor Group plc for 2025 will be delivered to
the Registrar of Companies following the company's annual general meeting.
The auditors have reported on these accounts; their report is unqualified and
does not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and did not
contain statements under either section 498 (2) or (3) of the Companies Act
2006. The 2025 annual report will be available on the group's website:
www.ir.begbies-traynorgroup.com.
Going concern
In carrying out their duties in respect of going concern, the directors have
completed a review of the group's financial forecasts for a period of two
years from the year end. This review included sensitivity analysis and stress
tests to determine the potential impact on the group of reasonably possible
downside scenarios. Under all modelled scenarios, the group's banking
facilities were sufficient and all associated covenant measures were forecast
to be met.
As such, the directors have a reasonable expectation that the company and the
group have adequate resources to continue in operational existence for the
foreseeable future. Accordingly, the financial information in this statement
is prepared on the going concern basis.
Adjusted performance measures
Management believe that adjusted performance measures provide meaningful
information to the users of the accounts on the performance of the business
and are the performance measures used by the board.
All of the items excluded from adjusted results are those which arise due to
acquisitions under IFRS. They are not influenced by the day-to-day operations
of the group.
Accordingly, adjusted measures of operating profit, profit before tax and
earnings per share exclude, where applicable, acquisition consideration
(treated as deemed remuneration under IFRS 3), negative goodwill, transaction
costs and amortisation of intangible assets arising on acquisitions and the
related tax effects on these items. These terms are not defined terms under
UK-adopted International Accounting Standards and may therefore not be
comparable with similarly titled profit measures reported by other companies.
They are not intended to be a substitute for, or superior to, GAAP measures.
2. Segmental analysis
The group's operating segments are established on the basis of the components
of the group that are evaluated regularly by the chief operating decision
maker (the board). The group is managed as two operating segments: business
recovery and advisory and property advisory.
Business recovery Property advisory Shared and central costs Consolidated
and advisory
2025 2025 2025 2025
£m £m £m £m
Revenue
Revenue from external customers from rendering of professional services 107.3 46.4 - 153.7
Operating profit before non-underlying items 28.4 7.8 (10.3) 25.9
Business recovery and advisory Property advisory Shared and central costs Consolidated
2024 2024 2024 2024
£m £m £m £m
Revenue
Revenue from external customers from rendering of professional services 96.4 40.3 - 136.7
Operating profit before non-underlying items 25.5 7.6 (9.2) 23.9
3. Non-underlying items
2025 2024
£m £m
Acquisition consideration (deemed remuneration in accordance with IFRS 3) 8.6 11.1
Negative goodwill (0.1) (0.8)
Transaction costs - 0.3
Amortisation of intangibles arising on acquisition accounting 3.5 5.6
12.0 16.2
4. Finance costs
2025 2024
£m £m
Interest on borrowings 1.5 1.2
Finance charge on lease liabilities 0.8 0.7
Finance charge on dilapidation provisions 0.1 -
2.4 1.9
5. Earnings per share
The calculation of basic and diluted earnings per share is based on the
following data:
2025 2024
£m £m
Earnings
Profit for the year attributable to equity holders 6.3 1.5
2025 2024
number number
m m
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings 158.9 158.6
per share
Effect of:
Share options 6.1 5.3
Contingent shares 0.9 -
Weighted average number of ordinary shares for the purposes of diluted 165.9 163.9
earnings per share
The weighted average number of ordinary shares for the purposes of basic
earnings per share includes options which have vested but are yet to be
exercised.
2025 2024
pence pence
Basic and diluted earnings per share
Basic earnings per share 4.0 0.9
Diluted earnings per share 3.8 0.9
The calculation of adjusted basic and diluted earnings per share is based on
the following data:
2025 2024
£m £m
Earnings
Profit for the year attributable to equity holders 6.3 1.5
Non-underlying items 12.0 16.2
Tax effect of above items (0.9) (1.4)
Adjusted earnings 17.4 16.3
2025 2024
pence pence
Adjusted basic earnings per share 11.0 10.3
Adjusted diluted earnings per share 10.5 9.9
6. Dividends
2025 2024
£'000 £'000
Amounts recognised as distributions to equity holders in the year
Interim dividend for the year ended 30 April 2024 of 1.3p (2023: 1.2p) per 2.0 1.8
share
Final dividend for the year ended 30 April 2024 of 2.7p (2023: 2.6p) per share 4.3 4.1
6.3 5.9
Amounts proposed as distributions to equity holders
Interim dividend for the year ended 30 April 2025 of 1.4p (2024: 1.3p) per 2.2 2.0
share
Final dividend for the year ended 30 April 2025 of 2.9p (2024: 2.7p) per share 4.6 4.3
6.8 6.3
The proposed final dividend is subject to approval by shareholders at the
annual general meeting in September 2025. The interim dividend for 2025 was
paid on 7 May 2025 and, accordingly, has not been included as a liability in
these financial statements nor as a distribution to equity shareholders.
7. Trade and other receivables
2025 2024
£m £m
Non-current
Prepaid deemed remuneration 2.8 2.8
Current
Trade receivables 14.0 12.9
Unbilled income 48.9 45.3
Other debtors and prepayments 4.1 2.9
Prepaid deemed remuneration 3.0 2.2
70.0 63.3
8. Trade and other payables
2025 2024
£m £m
Current
Trade payables 2.2 2.4
Accruals 13.5 12.1
Other taxes and social security 6.2 5.2
Deferred income 7.1 7.4
Liabilities to partners 8.7 8.6
Partner fixed capital 7.4 6.1
Other creditors 2.4 2.3
Contingent consideration (including deemed remuneration accrual) 4.7 5.9
52.2 50.0
In addition to the contingent consideration liability recognised above, there
are future potential obligations based on the sale and purchase agreements
which are contingent on financial performance and other performance
conditions, as detailed below
2025 2024
£m £m
Recognised as a liability 4.7 5.9
Anticipated future liability based on current financial performance 7.5 13.2
Current estimates of anticipated future payments 12.2 19.1
9. Reconciliation to the cash flow statement
2025 2024
£m £m
Profit for the year 6.3 1.5
Adjustments for:
Tax 5.2 4.3
Finance costs 2.4 1.9
Depreciation of property, plant & equipment 1.3 1.1
Right of use asset depreciation 3.1 2.7
Software amortisation 0.1 0.2
Non-underlying operating costs 12.0 16.2
Share-based payment expense 1.3 0.6
Operating cash flows before movements in working capital 31.7 28.5
Increase in receivables (excluding deemed remuneration prepaid) (5.8) (7.8)
Increase in payables (excluding deemed remuneration accrual) 5.0 4.1
Decrease in provisions - (0.3)
Cash generated by operations 30.9 24.5
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