Acquisitions drive half-year growth at Begbies Traynor Group

A series of acquisitions made over the past year has driven Begbies Traynor Group plc, the business recovery and property services consultancy, to achieve half-year growth.

In the six months ending October 31, the Manchester firm’s adjusted pre-tax profit dropped year on year by £1.1m to hit £600k.

Bosses have attributed the drop to amortisation of intangible assets arising on acquisitions made in the last year, which amounted to £1.4m, in addition to other exceptional and acquisition-related costs.

However, the group’s gross profit increased by £2m to reach £11.6m, while revenue grew to £25.5m during the period, up from £20.8m at the same point in 2014.

Ric Traynor, the executive chairman of Begbies Traynor Group, said of the results: “I am pleased to report a solid financial performance in the period with results in line with our expectations.

“The group has delivered growth in revenue and adjusted profit before tax, together with a strong cash performance, in addition to strengthening the business through acquisitions in both of our divisions, one subsequent to the period end.”

He added: “With no indications of a change to the benign financing environment in the UK which would cause an increase in insolvency levels, we remain cautious about activity levels in the insolvency division in the near term and will continue to focus on managing costs accordingly.”

On September 30 this year, Begbies Traynor Group completed its acquisition of The P&A Partnership Ltd, which was bought out of administration through a pre-pack deal for a maximum cash consideration of £900k.

After the half-year period end, on November 30, Begbies Traynor Group also completed the acquisition of TBS&V Limited’s entire issued share capital in a deal worth £1.85m.

Speaking further, Mr Traynor said: “The Eddisons business [a national firm of chartered surveyors], which was acquired in December 2014, has continued to perform in line with expectations and the remainder of the financial year will benefit from the acquisition of the Taylors business.

“Overall, our expectations for the year as a whole remain unchanged. We will continue to look for opportunities to develop and enhance the group, both organically and through selective acquisitions.”

The firm is due to report on its Q3 trading in March 2016.

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