Begbies Traynor upbeat after strong first half

(Sharecast News) - Professional services consultancy Begbies Traynor reported a strong set of half-year results on Tuesday, with substantial growth in revenue and profitability. The AIM-traded firm said revenue for the six months ended 31 October was up 16% year-on-year to £76.3m, including 11% organic growth and 5% from acquisitions.

Adjusted EBITDA increased 20% to £15.3m, which the board put down to higher revenue and improved margins, while adjusted profit before tax grew 16% to £11.5m, and statutory profit before tax rose 57% to £4.7m.

The interim dividend was increased to 1.4p, marking the seventh consecutive year of dividend growth.

Begbies Traynor said it maintained a strong financial position despite a net debt figure of £3.8m, which reflected acquisition-related payments, share buybacks, and dividends during the period.

Free cash flow improved by 8%, providing significant headroom within committed bank facilities to support its growth strategy.

The company said it achieved a robust performance across its two divisions.

It said the business recovery and advisory division saw higher insolvency activity, particularly in high-value cases, as well as strong growth in advisory income following team expansion and recent investments.

The property advisory division meanwhile saw strong growth in property auction volumes and consultancy services, alongside stable performance in valuation activities.

Begbies Traynor said it remained confident in meeting full-year market expectations, supported by favourable market conditions and sustained activity levels.

The board said the company was on track to achieve its medium-term revenue target of £200m, and would issue its third-quarter trading update in late February.

"I am pleased to report a strong first half performance in which we have continued to execute our strategy to grow the business, reporting high double-digit growth in revenue and profit," said executive chairman Ric Traynor.

"This builds on a decade of profitable growth, which has been driven by investing in organic development and earnings enhancing mergers and acquisitions.

"Since 2014, we have tripled the size of the business with a six-fold increase in adjusted profit before tax."

Traynor said building on that track record, the company was making "good progress" towards its medium-term revenue target of £200m.

"Market conditions remain supportive for the group's service lines which is reflected in our current activity levels and positive momentum across the business.

"This, together with our financial performance in the first six months, leaves the board confident of delivering current market expectations for the full year, which will extend our longstanding track record of strong, profitable growth."

At 0821 GMT, shares in Begbies Traynor were up 4.22% at 98.38p.

Reporting by Josh White for Sharecast.com.