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Begbies Traynor proclaims "strong performance" ahead of annual results

21st May 2024 14:08

(Alliance News) - Begbies Traynor Group PLC on Tuesday said it expects to report increased revenue and earnings for its latest financial year.

The Manchester-based recovery, financial advisory and property services consultancy said that for the year to April 30, it expects revenue to have risen by around 12%. It should total approximately GBP136 million, up from GBP121.8 million the previous year and within the market guidance range of GBP134.0 million to GBP135.2 million.

Begbies Traynor also said it anticipates revenue growth of around 7% for its Business Recovery & Advisory division, and "strong growth" of about 25% in Property Advisory & Transactional Services "driven by both acquisitions and organic development".

The company expects adjusted earnings before interest, tax, depreciation & amortisation to rise by about 9% to around GBP29 million from GBP26.6 million, ahead of market expectations of between GBP27.7 million and GBP28.4 million.

It also anticipates an approximate 6% rise in adjusted pretax profit to about GBP22 million from GBP20.7 million, within the consensus range of GBP21.9 million to GBP22.5 million.

Finally, Begbies Traynor said it expects net debt to be "lower than anticipated", beating guidance of between GBP2.0 million and GBP3.2 million to reach GBP1.4 million at April 30. This would compare with net cash of GBP3.0 million one year prior, but the company still noted that it "reflects better than anticipated cash generation in the final quarter".

The firm also noted its new GBP35 million debt facility agreed with HSBC, which it announced back in February.

"We have delivered another strong performance, with Ebitda ahead of market expectations and net debt lower than anticipated," commented Executive Chair Ric Traynor. "This was driven by increased activity levels in business recovery, which maintained its market-leading position by volume, and very strong growth across our property advisory and transactional services teams."

He continued: "The group's cash generation, combined with the significant headroom within our new debt facility, provides us with the flexibility to execute our strategy to continue to grow our scale and range of services both organically and through acquisition.

"We expect business recovery activity levels to remain strong, combined with a recovery in M&A activities and the continued growth across our property services business.

"We are therefore confident of continuing to build upon our long track record of growth in the current year and beyond."

Begbies Traynor shares traded 1.2% higher at 106.30 pence on Tuesday afternoon in London.

The firm plans to release its annual results on July 9.

By Emma Curzon, Alliance News reporter

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