Begbies Traynor revenue hits £33.8m
12 Dec 2019
Revenue at listed Begbies Traynor Group has grown substantially in the last 12 months to £33.8m in its half year results, as acquisitions and demand for insolvency services are up
12 Dec 2019
The business recovery, financial advisory and property services consultancy reported revenue for the six months ended 31 October 2019 was up 21% at £33.8m [2018: £28m], while profit before tax was £1.9m, substantially up on last year’s £500,000.
There was improved operating profit margin of 13.2%, compared to 12.6% in 2018 with 10% organic growth.
Insolvency volumes nationally have continued to increase in the period, with the underlying number of corporate insolvencies increasing by 7% in the 12 months ended 30 September 2019 to 16,857 (2018: 15,699). In this improving market the firm maintained market share, continuing to take the largest number of corporate insolvency appointments in the UK.
It also completed three acquisitions towards the end of the period, London insolvency practice Alexander Lawson Jacobs; Regeneratus Consulting 1, an Exeter-based advisory practice specialising in restructuring, turnaround and legal issues; and Stoke insolvency practitioners, Dunion & Co.
In their last reported financial years prior to acquisition, these three businesses reported aggregate revenue of £5.9m and pre-tax profit of £1.8m.
The firm raised net proceeds of £7.8m in July 2019 to fund acquisitions and meet investor demand.
Over the period, the firm has reduced its bank facilities with net debt reduced to £2.3m, from £6m at the start of the financial year.
Ric Traynor, executive chairman of Begbies Traynor Group, said: ‘I am pleased to report a strong half year financial performance with growth in revenue and earnings, together with improved operating margins. This reflects the benefit of the recent organic development of the group and our investment in acquisitions.
‘The increased scale of the group’s activities, favourable conditions in the UK insolvency market and our strong financial position leaves the group well placed to continue our track record of revenue and profit growth.
‘Following a strong financial performance in the first half of the year, the board remains confident of delivering results at least in line with current market expectations for the full year, including the benefit of the first-time contribution in the second half from our recent acquisitions.’
The business recovery team has expanded with the recruitment of fee earners, with a focus on business development and increasing capacity, and four new partners, two of which were external hires, were appointed.
The number of people employed in the division has increased to 412 from 364 at the start of the financial year.
Traynor said: ‘This expansion provides the capacity to deliver growth in revenue and profits and we continue to consider further recruitment to continue to build capacity for long term growth.
Peter Wilhelm Wallqvist has also joined the board as an additional non-executive director with immediate effect. He has significant digital transformation experience.
Wallqvist joined BT Research as a graduate engineer in 2003, and from there he went on to deliver a number of high-profile IT projects in the US and Europe at organisations such as Bloomberg and GlaxoSmithKline. In 2010, he co-founded and became CEO at the AI company RAVN Systems, to build and deliver a platform to drive digital transformation initiatives in the professional services industry.