Insolvency data underpins our fair value
The recent government data confirmed 2,114 registered company insolvencies in March 2022, more than double the figure a year earlier (March ‘21: 999) and 34% above its pre-pandemic equivalent (March ‘19: 1,582). The majority (87%) comprised Creditors’ Voluntary Liquidations (CVLs), twice March ‘21 and 62% above March ‘19.The latest data confirms that the underlying direction of travel is broadly as predicted. It reflects the gradual withdrawal of government measures designed to protect businesses against creditors during the pandemic, now exacerbated by rising inflation, staff shortages and falling retail sales. There has been an increase in insolvencies across all appointment types.
The shares have drifted in a nervous stock-market - possibly insolvency numbers have taken longer to pick up than some had anticipated - but BEG remains lowly rated and well below our retained 165p/share fair value estimate.
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.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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