Positive Q3, forecasts on track
BEG’s positive third quarter update (to end January 2023) was another confirmation of the inherent resilience of a broad services offering which includes business recovery, financial advisory, and property services consultancy. The detail included continuing good levels of new insolvency work, particularly administrations, and market share appears to be building.The overview is encouraging. Business recovery & financial advisory trade in line with expectations as this division works through a good pipeline of engagements. Property advisory & transactional services division is also performing well and in line with expectations. It is supported by resilient income streams and a continuing flow of new instructions.
Recent UK Insolvency Services data tracks growth in the market overall and we note that numbers flattened out somewhat over the last couple of months and administrations remain below historic levels. That broadly matches our view and the assumptions for our forecasts, which anticipated a long haul rather than a rapid recovery.
BEG’s Q3 financial performance was in line with the first half and the outlook is unchanged. The statement expressed confidence regarding delivery of full year market expectations and on that basis we have maintained our full year forecasts. Our existing 175p/share fair value is fully underpinned by the outlook for organic growth.
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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