Trading update on progress across all divisions
BEG’s trading update confirmed a strong first half as all areas of the business benefit from recent acquisitions: this leaves the group well on track to meet our full year forecasts. Reported first half revenue was c £52m (H120: £37.5m), and adjusted PBT c £8m (H120: £5.0m).The divisional overview confirmed that business recovery and financial advisory benefited from the performance and successful integration of prior year acquisitions. Deal completions drove corporate finance forward and its H2 outlook is underpinned by a strong transaction pipeline. Including contributions from acquisitions, property advisory and transactional services grew revenue and profit y-o-y, trading at normalised levels vs a lockdown impacted comparable period.
We would reiterate that our forecasts do not incorporate the material increase in market insolvency volumes that is typically part of any normal economic cycle. The timing and scale of any pickup has clearly been delayed by the support measures introduced by the UK Government during the pandemic.
Pending the interim results due out on 14 December, our forecasts are left unchanged as is our 165p/share fair value estimate, equivalent to a 18x FY22e PER and a 1.9% prospective yield (2.7x covered by adjusted earnings).
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.
Mattioli Woods provides pension consulting and administration, wealth management, asset management and employee benefits consultancy. Co.'s operating segments comprise:Pension consultancy and administration, which include setting up and administering pension schemes, as well as providing consultancy services for one-off activities; Investment and asset management, which manages and placing of investments on behalf of clients; Property management, which manages collective property investment vehicles, facilitates direct commercial property investments on behalf of clients; and Employee benefits, which assists its corporate clients with employee engagement.
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