AI Terminal
BEGBIES TRAYNOR GROUP PLC
Report Publication Announcement • Nov 18, 2024
7513_rns_2024-11-18_ee09c300-28bd-4fd8-be63-798020b0232b.html
Report Publication Announcement
Open in ViewerOpens in native device viewer
National Storage Mechanism | Additional information 
RNS Number : 4746M
Begbies Traynor Group PLC
18 November 2024
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 [email protected] 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 [email protected]
Information on Begbies Traynor Group can be accessed via the group's website at
www.ir.begbies-traynorgroup.com
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
TSTEAAFSFLXLFFA