TIDMBEG
RNS Number : 1910Z
Begbies Traynor Group PLC
20 May 2021
20 May 2021
Begbies Traynor Group plc
Year end trading update
Results expected to be comfortably 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 2021.
Summary
-- Results expected to be comfortably ahead of market
expectations* and prior year following a strong performance in the
fourth quarter:
o Revenue** expected to be c.GBP83.7m (2020: GBP70.5m)
o Adjusted PBT** expected to be c.GBP11.5m (2020: GBP9.2m)
-- Represents a further year of growth in both revenue and
profitability with continued margin enhancement
-- Strong trading performance in the final quarter across both operating divisions
-- Four acquisitions completed in 2021 - three in the financial
year and one at the start of the new year - significantly
increasing the scale of the group and its capabilities
o all performing in line with expectations and integration
projects proceeding well
-- Strong operating cash flow in the final quarter with net
cash** of GBP3.0m at 30 April 2021*** (2020: net debt of GBP2.8m) -
significantly better than expectations
* current range of analyst forecasts for revenue of
GBP77.1m-GBP78.5m and adjusted PBT of GBP10.5m-GBP11.1m
** all numbers in this statement subject to audit
*** net cash at 30 April 2021 is prior to the acquisition of MAF
Property Limited which was completed post year end
Divisional performance
Business recovery and financial advisory
-- Good financial performance with segmental revenue growth of
c.20% with continued improvement in margins
o Insolvency maintained revenue run rate in H2 on an organic
basis, despite suppressed market activity levels
o Advisory had a strong H2 performance due to corporate finance
completions
o Recently acquired businesses - CVR Global ("CVR") in January
2021 and David Rubin & Partners ("DRP") in March 2021 -
performing well
-- Integration projects on target: CVR fully integrated and DRP
integration to be completed in the new financial year
-- Several high-profile appointments secured in the period:
Football Index, Brooks Brothers and Ralph & Russo
-- Insolvency market continued to be suppressed due to
government financial support measures and temporary legislation
changes
o Corporate insolvencies decreased by 34% in the year ended 31
March 2021* to 11,081 (2020: 16,840)
*Source: The Insolvency Service quarterly statistics on the
number of corporate insolvencies (excluding compulsory
liquidations) in England and Wales on a seasonally adjusted
basis.
Property advisory and transactional services
-- Strong financial performance in the final quarter leading to
better than expected outcome for the year
-- Segmental revenue growth of c.15% with profits broadly
maintained despite significant impact of first lockdown in Q1
-- Activity and transaction levels recovered to pre-lockdown
norms in Q4 - no adverse impact from second or third lockdowns
-- London based HNG business (acquired in January 2021) trading
well and in line with expectations
Liquidity
-- Strong financial position with a net cash balance of GBP3.0m
at 30 April 2021 (2020: net debt of GBP2.8m)
o Includes the effect of the placing in March 2021 and CVR, DRP
and HNG acquisitions
-- Significant headroom in bank facilities* to fund organic investment and further acquisition opportunities
* Facilities comprise a GBP25m unsecured, committed revolving
credit facility which expires in 2023, together with a GBP5m
uncommitted acquisition facility
Ric Traynor, Executive Chairman of Begbies Traynor Group plc,
commented:
"We expect our results for the full year will be comfortably
ahead of market expectations. This will represent another year of
growth in revenue and profits, whilst investing in the group to
expand the range and depth of our service lines.
"This strong financial performance is despite the impact of a
suppressed insolvency market and the lockdown at the start of the
financial year. Our transactional businesses have bounced back
strongly, our organic investments have made good progress and we
continue to believe that the number of insolvencies will increase
as the government support measures are removed.
"The four acquisitions we have completed since the beginning of
2021 have significantly increased the scale of the group and its
capabilities, enhancing the support and advice we provide to UK
businesses, and leaving us well-placed to service the expected
increase in the number of insolvencies.
"With the benefit of these recent acquisitions and our organic
growth opportunities, the group is well positioned to deliver the
anticipated material growth in earnings in the new financial
year."
Enquiries please contact:
Begbies Traynor Group plc 0161 837 1700
Ric Traynor - Executive Chairman
Nick Taylor - Group Finance Director
Canaccord Genuity Limited 020 7523 4588
(Nominated Adviser and Joint Broker)
Emma Gabriel / Angelos Vlatakis
Shore Capital 020 7408 4090
(Joint Broker)
Mark Percy / Anita Ghanekar / James Thomas
MHP Communications 020 3128 8168
Reg Hoare / Katie Hunt / Florence Mayo 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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END
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