REG - Begbies Traynor - Year end trading update

Begbies TraynorAnnouncement

22/05/2023 07:00

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RNS Number : 0877A  Begbies Traynor Group PLC  22 May 2023

22 May 2023

Begbies Traynor Group plc

Year end trading update

Notice of full year results

Results expected to be 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 2023.

Summary

·      Results expected to be ahead of market expectations* which
represents double digit growth on the prior year:

o  Revenue** expected to increase by c.11% to c.£122m (2022: £110m)

o  Adjusted PBT** expected to increase by c.16% to c.£20.7m (2022: £17.8m)

·      Maintains strong track record of growth in both revenue and
profitability, with a continued improvement in profit margins in the year

·      Net cash** of £3m at 30 April 2023 (2022: £5m), having made
acquisition and earn out payments of £11m in the year

*               Market expectations (as compiled by the company):

Revenue £117.7m-£121.5m (consensus £120.6m), Adjusted PBT of
£19.7m-£20.6m (consensus £20.3m),

Net debt of £0.3m-£2.5m (consensus £1.4m)

**             All numbers in this statement subject to audit

 

Divisional performance

Business recovery and financial advisory

·      Strong financial performance with segmental revenue growth of
c.10%

o  Good organic growth (c.6%) in business recovery activities

o  First time contribution from the Mantra Capital acquisition in July 2022

·      Good momentum in new insolvency appointments in the year

o  Significant increase in higher value cases, reflecting our enhanced
reputation in mid-market insolvencies in recent years

o  Strong growth in insolvency order book gives confidence in continuing our
recent track record of growth

·      Market-leading insolvency positions maintained (by volume of
appointments):

o  13% share of the overall market - ranked first nationally

o  11% share of administration market - ranked second nationally

·      Insolvency market volumes continued to increase over the course
of the financial year, reflecting

o  Increased liquidations which, as previously reported, have exceeded
pre-pandemic levels; and

o  Increased administrations (typically larger cases) which remain below
historic levels but are higher than the post-pandemic lows of calendar 2021

·      Challenges for UK businesses are expected to continue to support
growth in the insolvency market

·      Advisory services performed well

o  Finance broking teams had a good year with Mantra Capital performing in
line with expectations in its first nine months in the group

o  Corporate finance deal completions gave a strong end to the financial year

Property advisory and transactional services

·      Good financial performance with segmental revenue growth of c.12%
driven by current year acquisitions (Budworth Hardcastle - June 2022 and Mark
Jenkinson & Co - March 2023) together with the full year benefit of prior
year acquisitions

·      Resilient organic performance (c.3% revenue growth) reflecting
the defensive nature of the majority of our property service lines in a
challenging marketplace

Liquidity

·      Net cash** of £3m at 30 April 2023 (2022: £5m), having made
acquisition and earn out payments of £11m 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 2023 on
Tuesday 11 July 2023. There will be an analyst presentation at 9.00am on the
day in London. 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 ahead of market
expectations, aided by our increased scale and enhanced reputation in
mid-market insolvency.

"We have further developed our range of services, extending both our financial
advisory business and property advisory services through earnings accretive
acquisitions principally funded by strong cash generation.

"Our strong financial position leaves us well placed to continue to invest in
the business, both organically and through acquisitions, to continue building
our scale and range of complementary services.

"We have started the new year confident in our outlook for a further year of
growth. Our insolvency team will benefit from their recent insolvency
appointments, together with anticipated further growth in the insolvency
market. We continue to identify growth opportunities for our advisory and
property teams, including the recently announced acquisition of Banks Long
& Co."

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) No 596/2014.

The person responsible for arranging the release of this announcement on
behalf of Begbies Traynor Group plc is Nick Taylor, its Group Finance Director

 

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 / Patrick Dolaghan

Shore Capital
                                              020 7408
4090

(Joint Broker)

Malachy McEntyre / Mark Percy / Anita Ghanekar / James Thomas

MHP
 
020 3128 8567

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

 

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

ir.begbies-traynorgroup.com

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