Continuing strategic progress in Q126

Begbies’ AGM trading update confirms that the strength of its diversified business, seen in its FY25 results, has continued into Q126 with activity levels described as encouraging, supported by favourable macroeconomic conditions.

Begbies has confirmed it has made a good start to FY26 with “encouraging activity levels and positive momentum across the group”. Management has continued to recruit senior fee-earners, “the full benefit of which is expected to deliver growth in H226 and beyond” and trading in Q126 was in-line with their expectations. 

Begbies’ share price has risen 22% since its FY25 trading update in May and yet still trades at a c.25% discount to its long-run average valuation multiples and at a discount to peers. With highly profitable organic growth of 5%-6%, and free cashflow to fund both acquisitions and dividends, we see scope for a further rerating.

Our fair value estimate of 150p equates to a c.7% cal 2026 FCF yield (pre-acquisitions).