18 November 2024
Begbies Traynor Group
plc
Half-year trading
update
Notice of half year
results
Strong financial performance
with double digit revenue and profit growth
Begbies Traynor Group plc (the
'company' or the 'group'), the professional services consultancy,
announces an update on trading for the six months ended 31 October
2024.
· Strong
year on year financial performance
o Revenue and adjusted profit
before tax increased by c.16%, with a good balance of organic and
acquired growth
o Free cash flow increased by
c.8%
o Net debt at 31 October 2024 of
£3.8m reflects acquisition earn out payments of £4.1m, share
buy-backs of £0.8m and dividends of £2.0m (30 April 2024: net debt
of £1.4m, 31 October 2023: net cash of £1.1m)
· Launch
of £1.5m share buyback programme to settle deferred consideration
obligations, which completed on 7 November 2024
· Confident of delivering market expectations* for the full year
to 30 April 2025, which would extend our ten year financial track
record of profitably growing the business
Operational highlights - growth across both
divisions
· Business recovery and advisory
o Business recovery: organic
growth driven by increased team size and positive levels of new
instructions reflecting continued favourable market
conditions
o Advisory: strong organic
growth driven by advisory, special situations M&A and financing
engagements
· Property advisory
o Asset sales: strong growth
driven by property auction volumes (organic and
acquired)
o Consultancy: continuing
organic growth in building consultancy instructions together with
on-going investment in growing the team
o Valuations: robust activity
levels reflecting supportive market volumes
National insurance costs
The increase in employer national
insurance rates announced by the UK Government in its Budget on 30
October 2024 will impact our business from April 2025. We
estimate the combination of lowering the earnings threshold at
which employers start paying national insurance contributions
together with the increase in rate will in aggregate increase our
employment costs by c.£1.25m per annum. We are reviewing options to
mitigate the impact where possible.
Guidance for the current year to 30
April 2025 remains unchanged.
Half year results
The group will report its half year
results for the six months ended 31 October 2024 on Tuesday 10
December 2024. 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@mhpgroup.com
if you would like to receive details.
*
current range of analyst forecasts for adjusted PBT of
£23.0m-£24.3m (as compiled by the group)
Ric
Traynor, Executive Chairman of Begbies Traynor Group plc,
commented:
"We have made a very good start to
the year with double digit growth in revenue and profits driven by
positive momentum across the group. This gives us confidence that
we will deliver market expectations for the year as a
whole.
"Additional headwinds for UK
business from increased employment costs and the prospect of higher
for longer interest rates are likely to extend the period of
elevated insolvency levels, increasing the need for advice and
support from our insolvency and business recovery
professionals."
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
020 7408 4090
(Joint Broker)
Malachy McEntyre / Mark Percy / Anita
Ghanekar / James Thomas
MHP
07595 461 231
Reg Hoare / Katie Hunt /
Charles Hirst
begbies@mhpgroup.com
Information on Begbies Traynor Group
can be accessed via the group's website at
www.ir.begbies-traynorgroup.com
