Begbies Traynor
Ticker: BEG Exchange: AIM www.begbies-traynorgroup.com/

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.

Resilient, undervalued, and growing

Begbies Traynor has confirmed financial performance in 3Q25 was as expected and that FY25E will extend its track record for strong financial growth. We forecast 11% revenue growth and a high 15% Adjusted PBT margin. The macro-economic environment remains supportive for Begbies and the group’s expansion into property advisory gives momentum which we believe is undervalued, trading on only c.9x calendar ‘25 PER.

Today’s trading update confirms that “both divisions have been consistent with the Board’s expectations in the quarter” and that “with a strong pipeline and continued elevated activity levels, our expectations for the full year remain unchanged”.  We forecast revenue of £152m for FY25E, +11%, comprising 9% for Business Recovery and Advisory services (to £105m) and 17% for Property Advisory services (to £47m).

BEG shares trade at a c.35% discount to their long-run average valuation multiples and a discount to peers. Offering highly profitable organic growth of 5%-6%, we see scope for a significant rerating to 14x calendar ‘25 PER and a 3% yield – equating to a fair value of 145p / share.

 

 

 
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