Begbies Traynor Group PLC – BEG – Trading Update and Notice of Half Year Results
Begbies Traynor Group plc ("the group"), the business recovery, financial advisory and property services consultancy, announces an update on trading for the six months ended 31 October 2020.
The group is pleased to report a strong financial performance in the six months. Group revenue in the period grew by c.10%, with adjusted profit before tax growing by c.25%, having absorbed the downside impact of lockdown in the first few months of the financial year. The group has maintained its strong financial position with net cash at 31 October 2020 of £0.7m (30 April 2020: net debt of £2.8m, 31 October 2019: net debt of £2.3m) and significant levels of headroom within our committed bank facilities.
Overall, the board expects results for the full year to be at least in line with current market consensus*, which would represent a further year of growth.
Our business recovery and financial advisory division has performed well in the first half, despite the subdued insolvency market resulting from the Government's Covid-19 financial support measures. We have increased our market share of new insolvency appointments in the period, which together with an increase in average case size, has partially mitigated the weakness in the wider market. These developments, combined with the first-time contribution from prior year acquisitions, has enabled the division to record growth in revenue and profits on the comparative period.
Our property advisory and transactional services division has delivered a robust performance in the period, having absorbed the downside impact of the lockdown in the first few months of our financial year. The division has generated solid operating margins with strong performance from our building consultancy business, which partially offset the downside from service lines which were impacted by the spring lockdown. The board is pleased to report that these impacted service lines have all shown a strong recovery in performance in recent months.
* Market consensus for adjusted PBT of £9.8m (as compiled by the group)
Notice of results
The group will report its half year results for the six months ended 31 October 2020 on Tuesday, 8 December 2020. There will be a virtual analyst presentation at 9:30am on the day. Please contact Pandora Yadgaroff via firstname.lastname@example.org or on 020 3128 8168 if you would like to receive details.
Ric Traynor, Executive Chairman of Begbies Traynor Group, commented:
"I am pleased to report a continuing strong financial performance in the first six months of the financial year, which is testament to how our teams continue to deliver excellent client service in a challenging environment. We anticipate continuing our recent financial track record of growth for the year as a whole, ensuring we are well placed to invest in our successful organic and acquisitive growth strategy. Overall, our medium-term outlook remains positive especially once the economy exits this current period of uncertainty."