Begbies Traynor Group - Diversified advisory portfolio drives robust growth
Begbies’ H1'26 revenue and Adj. PBT rose by 7% and 5% respectively, driven by strategic investment in staff, favourable macro-economic conditions, and growth across its breadth of services. The company is confidently on track for FY26E revenue and profit expectations.H1 saw further good growth with group revenues +c.7% to c.£82m. Begbies’ core restructuring advisory business led with over 10% organic growth, and Property advisory revenues (30% of group in FY25) rose by 7%.
National insurance increases have cost c.85bps of operating margin, but efficiencies and an underlying improvement in margin have reduced the overall impact to a c.50bps decrease at group level: to a still high 16%.
Management is confident in delivering FY26E expectations (consensus FY26E Adj. PBT of £23.7m-£24.9m) and we make no changes to our overall forecasts. Begbies looks well positioned, generating cashflow to invest in growth and capital returns, whilst the macro-economic environment remains favourable for group activities.
Yet Begbies is trading on only c.6x EV/EBITDA, standing at a material discount to both its long-run average valuation multiples and our unchanged fair value of 150p/ share.
Begbies Traynor Group is a business recovery, financial advisory and property services consultancy. Co. provides these services through two operating segments: business recovery and financial advisory services, which provides transactional support, valuations and advisory services through its subsidiary, BTG Financial Consulting LLP; and property services, which delivering advisory, such as commercial property valuations, property receiverships, property management and accounting, and as well as transactional services that include property auctioneers, machinery and business asset auctioneers to owners and occupiers of commercial property, investors and financial institution.
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