Acquisitions help drive annual results for Begbies
Insolvency specialist Begbies Traynor published annual results better than expectations today, due to improved trading and its most recent acquisitions.
The Manchester-based group saw revenues for the year to April 30, 2020, improve from £70.5m to £83.8m. Pre-tax profits of £1.9m compared with £2.9m the previous year.
Begbies finished the year with net cash of £3m, compared with a £2.8m deficit in 2020. The annual dividend has been increased from 2.8p per share to 3p per share.
Of the 19% increase in revenues, 13% came from acquisitions and six per cent organic. Begbies acquired CVR in January 2021, and DRP in March. It also added two portfolios of personal insolvency cases in May 2020 and September 2020, which included a team of five fee earners.
Subsequent to the year end, in May 2021, the group acquired MAF Finance Group, a Midlands-based finance broker.
Begbies said all areas of the group performed well. In business recovery and financial advisory there was a strong organic performance against a challenging insolvency market backdrop and good returns from acquisitions.
Property advisory and transactional services saw a strong finish to the year with recovery in activity levels of lockdown-impacted service lines.
In current trading, business recovery and financial advisory are well placed to continue recent track record of growth, with an anticipated increase in market activity levels as government support measures are withdrawn from the second half. A recovery to normal trading levels is expected following the lockdown impact in spring 2020.
Ric Traynor, executive chairman, said: “I am pleased to report on a year of real progress for the group, with results ahead of our original expectations due to improved trading and acquisitions.
“We have delivered a strong financial performance with another year of growth in revenue and adjusted profits, despite the impact of the COVID-19 pandemic, whilst making substantial investments which have significantly increased the scale of the group and its capabilities.
“Over the last four financial years, we have delivered compound annual growth in adjusted earnings per share of 20%, including 10% organic growth.
“Over the same period we have moved from net debt of £10.3m to net cash of £3.0m at the year end, whilst making value-enhancing acquisitions and delivering eight per cent compound growth per annum in dividend per share.
“Overall, the group is in a very strong position as we start our new financial year.”
He added: “The four acquisitions we have completed since the beginning of 2021 have significantly increased the scale of the group and its capabilities, enhancing the support and advice we provide to UK businesses.
“With the benefit of our recent acquisitions, our organic growth and future acquisition opportunities, we are well positioned to deliver the anticipated material growth in earnings in the new financial year.”
