Begbies Traynor hails year of strong financial performance
Begbies Traynor, the insolvency and property advisory specialist which has offices in Derby, Leicester, Lincoln, Loughborough, Northampton and Nottingham, has hailed another year of strong financial performance which has seen a seventh consecutive year of dividend growth and a six-fold increase in profit since 2014.
Annual revenues for the period to April 30, 2024, came in at £136.7m, compared with £121.8m the previous year, although pre-tax profits slipped slightly from £6m in 2023 to £5.8m.
Business recovery and advisory showed seven percent growth in revenues (six per cent organic), led by business recovery, up 13%, while property advisory achieved growth of 26% (seven per cent organic) – a record year for the division.
The company completed four earnings-accretive acquisitions in the financial year, which contributed £5m to reported revenues.
The annual shareholder dividend is increasing by five per cent, from 3.8p per share to 4p.
Net debt stood at £1.4m, against a £3m surplus the previous year. Begbies said net debt lower than originally anticipated, having absorbed acquisition consideration and the funding of EBT share purchases totalling £11.1m.
Activity levels across all service lines are encouraging for the current financial year, Begbies said.
Business recovery activity is expected to be maintained at elevated levels going into 2025, while advisory and corporate finance is expected to improve performance, with the anticipated recovery in M&A activity and continuing positive activity levels within debt advisory and funding.
Property advisory has good momentum and prospects for further acquisitive and organic development.
Executive chairman, Ric Traynor, said: “I am pleased to report on another successful year of strong financial performance, which now represents a decade of profitable growth.
“This has been driven by our proven growth strategy of investing in organic development and earnings enhancing M&A, resulting in a diversified and resilient business. We have delivered value to shareholders across the cycle having tripled the size of the business with a six-fold increase in profit since 2014.”
He added: “We have started the new year confident of a further year of growth, in line with market expectations. Activity levels across our service lines are encouraging with positive momentum across the group.
“Overall, our broad range of services, diversified client base, organic growth initiatives and pipeline of acquisition opportunities, leaves us confident of continuing our track record of growth.”
He said there will be an update on trading at the annual general meeting in September 2024.
