Strong H1 with double digit revenue & profit growth
Today’s confident statement reflects a strong first half to end October 2022 (announcement scheduled for release on 13 December) expected to include c. 12% growth in H1 revenue to £58.5m and 13% higher adjusted PBT to £9m.Underlying operating cash flow has remained robust: £2.4m reported net debt at end October (H1 2021: £1.2m net cash) was post £7.2m of acquisition and deferred consideration payments in the period.
Begbies Traynor in our view remains very well placed against a difficult economic backdrop and anticipates momentum behind demand for its insolvency and restructuring advice to build as corporate financial distress levels rise. The interims will include more detail on the market outlook and how recent acquisitions are performing, but we regard this as an encouraging report.
This update underpins our current forecasts and 175p/share Fair Value assessment, equating to 17.5x FY23e PER, at a 2.1% prospective yield (with 2.7x cover).
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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