Half year results for the six months ended 31 October 2022

Business Health Statistics

| December 14th 2022

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Date Published: 14th December 2022

Half year results for the six months ended 31 October 2022
Begbies Traynor Group plc (the 'company' or the 'group'), the business recovery, financial advisory and property services consultancy, today announces its half year results for the six months ended 31 October 2022.

 Financial overview

Financial highlights

  • Strong first half performance with double digit revenue and profit growth in both divisions
       o Building on consistent track record of growth in revenue and adjusted earnings
  • Growth in revenue of 12% and adjusted profit before tax of 13%
  • Increase in interim dividend to 1.2p (2021: 1.1p), which builds on the 10% compound annual growth in the dividend since 2017
  • Strong balance sheet and significant levels of headroom within committed bank facilities, ensures well placed to continue to invest in successful organic and acquisitive growth strategy
       o Net debt of £2.4m, after £7.4m of acquisition related payments in the six months

 Divisional highlights

  •  Business recovery and financial advisory performed well:

       o Market-leading positions maintained (by volume of appointments):
                            · 14% share of the overall market - ranked first nationally
                            · 10% share of administration market - ranked second nationally

       o Increased number and value of insolvency appointments including:
                            · several higher profile administration appointments
                            · pilot project for recovery of bounce back loans for major bank

       o Advisory services, including Mantra Capital the finance brokerage acquired July 2022, performed    well benefitting from organic growth and acquisitions

Property advisory and transactional services had a successful period:

   o Resilient income streams enabled strong performance in a challenging economic environment
   
o Growth from organic initiatives and acquisitions
   o Budworth Hardcastle (acquired June 2022) traded well in the period and in line with expectations

Current trading and outlook

  • Confident of delivering full year results in line with current market expectations****
       o Extending the group's strong financial track record of growth
       o Business recovery - order book up 15% in last six months to £33.9m, higher level of enquiries and increasing economic headwinds
       o Financial advisory - encouraging pipeline of engagements
       o Property advisory and transactional services - resilient income streams and continuing flow of new instructions
  • Q3 trading update will be issued in late February 2023

Commenting on the results, Ric Traynor, Executive Chairman of Begbies Traynor Group, said:

"The group's strong performance builds on our consistent track record of growth, with double digit increases in revenues and profits from both divisions which we have continued to grow organically and through acquisitions.

"We expect continued growth from business recovery and financial advisory, given its increased order book, higher level of enquiries and increasing economic headwinds. We are also confident in the prospects for property advisory and transactional services, reflecting its resilient income streams, continuing flow of new instructions and potential to continue developing its mix of services. 

"Overall, we remain confident of delivering upon expectations for the full year.

"Our broad range of services, diversified client base, organic growth initiatives and pipeline of acquisition opportunities, combined with increasing counter-cyclical activity, will enable us to continue to build upon our strong track record in the current year and beyond."

* The board uses adjusted performance measures to provide meaningful information on the performance of the business. The items excluded from adjusted PBT and EPS are those which arise due to acquisitions in accordance with IFRS 3 and are not influenced by the day-to-day operations of the group. Adjusted EBITDA excludes non-cash share-based payment and depreciation charges from adjusted PBT.

** Profit before tax of £5.0m (2021: £2.7m) plus amortisation of intangible assets arising on acquisitions of £3.2m (2021: £2.6m) plus transaction costs of £0.8m (2021: £2.7m).

*** See reconciliation in note 5.

**** Current range of analyst forecasts for revenue of £117.7m-£121.4m and adjusted PBT of £19.7m-£20.6m (as compiled by the group)


About the author

Ric Traynor

Executive Chairman

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Ric qualified with Arthur Andersen in 1984 and founded Begbies Traynor in 1989. Ric specialises in practice management and has considerable experience in financial turnaround and dispute resolution within professional practices.

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