The first half result was impressive with 39% revenue growth and a pleasing 16% operating margin (H1 20/21:14.4%), achieved despite important market drivers having been artificially suppressed by government support measures. Growth in revenues and profits reflect successful implementation of earnings enhancing acquisitions, 13 of which have been completed over the last five years.
Business Recovery division reported a 48% increase in first half revenue to £38.7m (H1 20/21: £26.1m), driven principally by first-time contributions from acquisitions (£13.2m). Property and Transaction Services revenues were 19% ahead at £13.6m, with profit at £2.4m, 50% up on a pandemic-affected comparable.
In addition to extended service lines, additional market share and profile, the new group entities have delivered cost savings, cross selling opportunities and other synergies, all of which should underpin future organic growth.
Our forecasts are unchanged and underpinned by an anticipated second half weighting. We also retain a 165p/share fair value estimate, equivalent to a 17.9x FY22e PER and a 1.9% prospective yield (2.9x covered by adjusted earnings).
15 Dec 2021
Building further share in key markets
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Building further share in key markets
Begbies Traynor Group plc (BEG:LON) | 106 0.5 0.5% | Mkt Cap: 169.0m
- Published:
15 Dec 2021 -
Author:
Roger Leboff -
Pages:
8
The first half result was impressive with 39% revenue growth and a pleasing 16% operating margin (H1 20/21:14.4%), achieved despite important market drivers having been artificially suppressed by government support measures. Growth in revenues and profits reflect successful implementation of earnings enhancing acquisitions, 13 of which have been completed over the last five years.
Business Recovery division reported a 48% increase in first half revenue to £38.7m (H1 20/21: £26.1m), driven principally by first-time contributions from acquisitions (£13.2m). Property and Transaction Services revenues were 19% ahead at £13.6m, with profit at £2.4m, 50% up on a pandemic-affected comparable.
In addition to extended service lines, additional market share and profile, the new group entities have delivered cost savings, cross selling opportunities and other synergies, all of which should underpin future organic growth.
Our forecasts are unchanged and underpinned by an anticipated second half weighting. We also retain a 165p/share fair value estimate, equivalent to a 17.9x FY22e PER and a 1.9% prospective yield (2.9x covered by adjusted earnings).