Begbies Traynor Group PLC on Monday said it expects annual revenue and profit in line with market expectations, partially due to recent acquisitions, and it expressed confidence that the current year will provide further growth opportunities.
Begbies Traynor is a Manchester, England-based business recovery, financial advisory and property services consultancy.
The company said it expects adjusted pretax profit for the year ended April 30 of £20.7 million, up 16% from £17.8 million the previous year. It expects revenue to increase 11% to approximately £122 million from £110 million.
Begbies Traynor said it maintained its ‘strong track record’ of revenue and profit growth, with margins continuing to improve.
Net cash at April 30 was £3 million, down from £5 million on the same date in 2022. Begbies Traynor attributed the decrease to acquisition and earn-out payments, which amounted to £11 million.
Its business recovery and financial advisory division gave a ‘strong financial performance’ with segmental revenue growth of around 10%, including a contribution from its acquisition of Mantra Capital in July.
Begbies Traynor said its property advisory and transactional services division likewise performed well, with segmental revenue growth of around 12%. It said this was driven by its acquisitions of Budworth Hardcastle in June 2022 and Mark Jenkinson & Co in March this year, alongside the full-year benefits of other acquisitions in prior years.
Looking ahead, Begbies Traynor anticipates that UK business will continue to support growth in the insolvency market. Its £30 million HSBC facilities have been extended to August 31, 2024, and Begbies said it has ‘significant headroom’ to fund further investment and acquisition opportunities.
‘We performed strongly in the financial year, with results ahead of market expectations, aided by our increased scale and enhanced reputation in mid-market insolvency,’ Executive Chair Ric Traynor commented.
‘We have started the new year confident in our outlook for a further year of growth. Our insolvency team will benefit from their recent insolvency appointments, together with anticipated further growth in the insolvency market.’
Shares in Begbies Traynor were down 1.0% at 130.75 pence in London on Monday morning.
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