Begbies Traynor Group has reported strong half year results and positive outlook for its full year.
The first six months of the firm’s 2019/20 year (ending 31 October 2019) saw 21% revenue growth, 10% of which is organic, compared to the same period for the previous year. Revenues rose from £28 million to £33.8 million. The group also improved its operating profit from 12.6% in 2018 to 13.2% in 2019.
The group completed three acquisitions near the end of the six-month period. They were Alexander Lawson Jacobs— an insolvency and business recovery practice, Ernest Wilson—a business sales agency and Regeneratus—an advisory practice that focuses on restructuring, turnaround and legal issues.
The last annual financial statements prior to acquisition gave these three firms an aggregate revenue of £5.9 million and a pre-tax profit of £1.8 million.
Executive Chairman of Begbies Traynor Group, Ric Traynor 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.”
Strong second half
The group also increased its interim dividend rate from 0.8p to 0.9p (a 13% increase). The new interim rate is expected to be paid to shareholders in the first quarter of the 2020/21 year.
Begbies Traynor’s strong showing in the first half of the year leaves the firm optimistic for the second half of the 2019/20 accounting year. They have stated they are confident that at minimum they can deliver results in line with current expectation.
In addition, the assets acquired in the first half of the year are expected to contribute to earnings in the second half and that the aggregate impact of placing and acquisitions are anticipated to enhance earnings in the current year and thereafter.
Traynor noted: “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. We will provide an update on third quarter trading in early March 2020.”
Begbies Traynor Group provides services in business recovery, financial advisory and property services consultancy. The financial statement for the first half of the 2019/20 year can be found here.