Bolt-on adds scale and profile to property services

BEG’s latest acquisition, chartered surveying firm Daniells Harrison, extends its geographical coverage across the South Coast. This addition is part of the group’s ongoing strategy to develop the service portfolio and geographical reach of its Property Advisory and Transactional Services division.

Since its inception at the end of 2014, BEG has progressively grown this division beyond its original northern base into London, Eastern England and now the South Coast. It demonstrates an intention to continue building a strong and visible revenue base derived from complementary professional services businesses. Acquisitions and organic growth since have increased divisional revenues from c £13m pa to a £26m current run rate.

For now we have held our forecasts and will revisit these as the detail of UK insolvency market volumes becomes available during the remainder of the current financial year. We also maintain a 165p/share fair value, equivalent to a 17.9x FY22e PER and a 1.9% prospective yield (2.9x covered by adjusted earnings).