Report
Roger Leboff

Update extends long record of growth

A positive FY24 update reiterates the inherent reliability of its business. Both revenues (up 12% at c £136m) and EBITDA are expected to come in ahead of market expectations, adj. PBT in line. The latter reflects relatively subdued corporate finance M&A volumes and expenses related to investment in its teams and IT support.

According to the update both divisions grew materially y-o-y on the back of acquisitions and organic growth. Business recovery and advisory was c 7% up, property advisory and transactional services by c 25%. The latter saw all its core disciplines - valuation, asset sales and consultancy - pick up pace. The c 13% expected revenue growth by business recovery reflects higher activity levels across all case sizes and that operation is well placed to capitalise on market growth.

The four acquisitions completed in FY24 added c £5m to FY24 revenues (£9m+ pa on an ongoing, pro-forma basis), and built insolvency and property advisory operational capacity and geographical profile. Their integration is progressing well and all trade in line with expectations.

We expect more acquisition led and organic growth which has driven the last 3 years, with BEG to add capacity, geographical reach, and market share in its core disciplines. The rating of BEG shares appears to have lagged events and we retain our 175p/share fair value.
Underlying
Begbies Traynor Group PLC

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.

Provider
Equity Development
Equity Development

​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.

Analysts
Roger Leboff

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