Begbies Traynor lifts dividend after 'strong' first half

Business recovery, financial advisory and property consultancy Begbies Traynor reported a “strong” first half performance on Tuesday, with double-digit revenue and profit growth in both of its divisions.

The AIM-traded firm said revenue was ahead 12% year-on-year in the six months ended 31 October, at £58.5m, while adjusted profit before tax was 13% firmer at £9m.

Adjusted EBITDA increased to £11.9m from £11.1m, while profit before tax came in at £5m, compared to £2.7m a year earlier.

The company said adjusted diluted earnings per share improved to 4.4p from 3.9p, as the firm swung to diluted earnings of 2.3p per share, from losses of 0.2p per share in the first half of the 2022 financial year.

Its board hiked the interim dividend to 1.2p from 1.1p, building on its 10% compound annual growth in the dividend since 2017.

The company said it had a “strong” balance sheet and “significant” levels of headroom within its committed bank facilities, meaning it was “well-placed” to continue to invest in its organic and acquisitive growth strategy.

Net debt at period-end on 31 October totalled £2.4m, after £7.4m of acquisition-related payments in the six months.

Looking ahead, Begbies Traynor said it was “confident” of delivering full-year results in line with current market expectations, extending its “strong” financial track record of growth.

In business recovery, it said its order book was up 15% in the last six months to £33.9m, amid higher level of enquiries and increasing economic headwinds.

Financial advisory meanwhile had an “encouraging” pipeline of engagements, while property advisory and transactional services saw “resilient” income streams and a “continuing flow” of new instructions.

“The group's strong performance builds on our consistent track record of growth, with double digit increases in revenues and profits from both divisions which we have continued to grow organically and through acquisitions,” said executive chairman Ric Traynor.

“We expect continued growth from business recovery and financial advisory, given its increased order book, higher level of enquiries and increasing economic headwinds.

“We are also confident in the prospects for property advisory and transactional services, reflecting its resilient income streams, continuing flow of new instructions and potential to continue developing its mix of services.”

Overall, Traynor said the company remained “confident” in delivering on full-year expectations.

“Our broad range of services, diversified client base, organic growth initiatives and pipeline of acquisition opportunities, combined with increasing counter-cyclical activity, will enable us to continue to build upon our strong track record in the current year and beyond.”

Begbies Traynor said it would issue a third-quarter trading update in late February.

At 1255 GMT, shares in Begbies Traynor Group were down 6.68% at 137p.

Reporting by Josh White for Sharecast.com.