17 November 2022
Begbies Traynor Group plc
Trading update
"Performing well and confident of delivering 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 the six months ended 31 October 2022.
Summary - performing well with double digit growth
· Strong financial performance:
o Revenue expected to increase by c.12% to c.£58.5m (2021: £52.3m)
o Adjusted PBT expected to increase by c.13% to c.£9.0m (2021: £8.0m)
· Net debt of £2.4m at 31 October 2022 (2021: net cash of £1.2m)
o robust operating cash flow net of dividend payments
o acquisition and deferred consideration payments of c.£7.2m in the six months
· Confident of delivering market expectations for the full year:
o Will extend our strong financial track record of growth
Divisional performance
Business recovery and financial advisory
· Segmental revenue growth of c.10%:
o Insolvency appointments increased in the period including a number of larger, mid-market insolvency and restructuring cases
o Result of increased activity in administrations and expanded London office and offshore practice
· Market-leading positions maintained (by volume of appointments):
o 14% share of the overall market - ranked first nationally
o 10% share of administration market - ranked second nationally
· Other advisory services, including Mantra Capital the finance brokerage acquired July 2022, traded well in the period with financial performance in line with expectations
Property advisory and transactional services
· Segmental revenue growth of c.18%:
o Reflecting resilient income streams in a challenging economic environment
· Budworth Hardcastle (acquired June 2022) traded well in the period and in line with expectations
Half year results presentation
The group will report its half year results for the six months ended 31 October 2022 on Tuesday 13 December 2022. There will be a webcast and conference call for analysts at 9:00am. This will be hosted by Ric Traynor, Executive Chairman and Nick Taylor, Group Finance Director.
Please contact begbies@mhpc.com or on 020 3128 8567 if you would like to receive details.
* current range of analyst forecasts for adjusted PBT of £19.7m-£20.6m (as compiled by the group)
Ric Traynor, Executive Chairman of Begbies Traynor Group plc, commented:
"We have performed well in the first half with double digit growth and strong performances in both divisions. As corporate financial distress levels rise in a deteriorating economic environment, we anticipate continued momentum in activity levels in insolvency and restructuring and we are better placed than ever to take advantage of this with our expanded presence and enhanced service offering.
"We remain confident of delivering market expectations for the full year thereby extending our strong financial track record of growth."
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 Communications 020 3128 8567
Reg Hoare / Katie Hunt / Pauline Guenot begbies@mhpc.com
Information on Begbies Traynor Group can be accessed via the group's website at
www.begbies-traynorgroup.com/investor-relations
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