Begbies Traynor Group PLC – Half year results

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 2019.

 

Financial overview *

 

	2019	2018
	£m	£m
Revenue	33.8	28.0
Adjusted profit before tax** ***	4.0	3.0
Profit before tax	1.9	0.5
Adjusted basic EPS** **** (p)	2.6	2.1
Basic EPS (p)	1.1	–
Interim dividend (p)	0.9	0.8
Net debt	2.3	6.3

 

* IFRS 16 ‘Leases’ was adopted from the start of the financial period. All comparative figures included within this announcement have been restated in accordance with the new standard, which has been adopted on a fully retrospective basis. Further details are included in note 1(b) to this statement.

 

** The board uses adjusted performance measures to provide meaningful information on the performance of the business. The items excluded from our adjusted results are those which arise due to acquisitions in accordance with IFRS 3.  They are not influenced by the day-to-day operations of the group.

 

*** Profit before tax of £1.9m (2018: £0.5m) plus amortisation of intangible assets arising on acquisitions of £1.4m (2018: £1.1m) plus transaction costs of £0.7m (2018: £1.4m).

 

**** See reconciliation in note 5.

 

Highlights:

 

·      Revenue growth of 21% (10% organic) with improved operating profit margin of 13.2% (2018: 12.6%) 

·      Organic development of both divisions continued, with investment in new fee earning staff and teams

·      Completed three acquisitions towards the end of the period, enhancing both divisions

·      Raised net proceeds of £7.8m in placing in July 2019: meeting investor demand and funding acquisitions

·      13% increase in interim dividend building on increases of the previous two financial years

 

Outlook:

 

·      Confident of delivering results at least in line with current expectations with a further year of growth

·      Second half contribution from recent acquisitions

·      Aggregate impact of placing and acquisitions anticipated to be earnings enhancing in current year and thereafter

 

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

“I am pleased to report a strong half year financial performance with growth in revenue and earnings, together with improved operating margins.  This reflects the benefit of the recent organic development of the group and our investment in acquisitions.

“The increased scale of the group’s activities, favourable conditions in the UK insolvency market and our strong financial position leaves the group well placed to continue our track record of revenue and profit growth.

“Following a strong financial performance in the first half of the year, the board remains confident of delivering results at least in line with current market expectations for the full year, including the benefit of the first-time contribution in the second half from our recent acquisitions. We will provide an update on third quarter trading in early March 2020.”