Begbies Traynor
Ticker: BEG Exchange: AIM

Begbies Traynor Group plc is an AIM-listed professional services consultancy delivering solutions for businesses, financial institutions and professional advisers in the areas of corporate recovery, restructuring and turnaround, corporate finance, forensic accounting, investigations and security risk.

The Group serves its clients via an extensive UK office network and through an international association of approved partner firms which enables it to draw together specialist teams from around the world to meet specific cross-jurisdictional challenges.

Building further share in key markets

The first half result was impressive with 39% revenue growth and a pleasing 16% operating margin (H1 20/21:14.4%), achieved despite important market drivers having been artificially suppressed by government support measures. Growth in revenues and profits reflect successful implementation of earnings enhancing acquisitions, 13 of which have been completed over the last five years.

Business Recovery division reported a 48% increase in first half revenue to £38.7m (H1 20/21: £26.1m), driven principally by first-time contributions from acquisitions (£13.2m). Property and Transaction Services revenues were 19% ahead at £13.6m, with profit at £2.4m, 50% up on a pandemic-affected comparable.

In addition to extended service lines, additional market share and profile, the new group entities have delivered cost savings, cross selling opportunities and other synergies, all of which should underpin future organic growth.

Our forecasts are unchanged and underpinned by an anticipated second half weighting. We also retain a 165p/share fair value estimate, equivalent to a 17.9x FY22e PER and a 1.9% prospective yield (2.9x covered by adjusted earnings).


Note summarised:

BEG H1   Dec 2021


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