Update anticipates 13% H1 revenue growth
BEG’s positive H1 trading update confirmed that activity levels across the group complement are encouraging. The interims due 11 Dec 2023 are expected to show c 13% increases in revenue and adjusted operating profit derived from a ‘good mix’ of organic and acquired growth. Adjusted PBT, net of higher finance costs is at c 10%+. That puts the group firmly on track to achieve our forecasts.Acquisitions secured in H1 extended service offerings and regional coverage and have performed on track. BEG reiterated its plan to invest for future growth and will lean on a strong balance sheet with £1.1m net cash at end Oct 2023 vs net debt of £2.4m a year earlier. An estimated 80% of group revenues are counter-cyclical and defensive.
We retain our 175p/share fair value estimate pending the results, a level equivalent to 17x FY24 EPS and a 2.3% yield.
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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