Update shows FY23 well ahead of forecasts
The FY23 trading update notes a strong performance for the 12 months to end April 2023, well ahead of our forecasts. BEG has progressively built scale and profile in key target competencies and markets and benefited from its enhanced reputation as a provider of mid-market insolvency services.The announcement anticipates double digit growth y-o-y; revenues 11% ahead at £122m (FY22: £110m), adjusted PBT 16% up at £20.7m (FY22: £17.8m). Predicted end FY23 net cash should be in line with our prediction at £3m (2022: £5m), despite c £11m of acquisition/earn out payments during the period.
The group’s two divisions performed well. Revenues from Business Recovery and Financial Advisory were c 10% ahead of the prior year and include c 6% organic growth in business recovery activities. Property Advisory and Transactional Services recorded 12% segmental revenue growth (3% organic).
We shall publish FY24e forecasts shortly after further analysis, but the Group outlook for further growth is certainly confident which underpins our current 175p / share fair value estimate.
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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