Today’s confident statement reflects a strong first half to end October 2022 (announcement scheduled for release on 13 December) expected to include c. 12% growth in H1 revenue to £58.5m and 13% higher adjusted PBT to £9m.
Underlying operating cash flow has remained robust: £2.4m reported net debt at end October (H1 2021: £1.2m net cash) was post £7.2m of acquisition and deferred consideration payments in the period.
Begbies Traynor in our view remains very well placed against a difficult economic backdrop and anticipates momentum behind demand for its insolvency and restructuring advice to build as corporate financial distress levels rise. The interims will include more detail on the market outlook and how recent acquisitions are performing, but we regard this as an encouraging report.
This update underpins our current forecasts and 175p/share Fair Value assessment, equating to 17.5x FY23e PER, at a 2.1% prospective yield (with 2.7x cover).
17 Nov 2022
Strong H1 with double digit revenue & profit growth
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
Strong H1 with double digit revenue & profit growth
Begbies Traynor Group plc (BEG:LON) | 106 0.5 0.5% | Mkt Cap: 169.0m
- Published:
17 Nov 2022 -
Author:
Roger Leboff -
Pages:
2
Today’s confident statement reflects a strong first half to end October 2022 (announcement scheduled for release on 13 December) expected to include c. 12% growth in H1 revenue to £58.5m and 13% higher adjusted PBT to £9m.
Underlying operating cash flow has remained robust: £2.4m reported net debt at end October (H1 2021: £1.2m net cash) was post £7.2m of acquisition and deferred consideration payments in the period.
Begbies Traynor in our view remains very well placed against a difficult economic backdrop and anticipates momentum behind demand for its insolvency and restructuring advice to build as corporate financial distress levels rise. The interims will include more detail on the market outlook and how recent acquisitions are performing, but we regard this as an encouraging report.
This update underpins our current forecasts and 175p/share Fair Value assessment, equating to 17.5x FY23e PER, at a 2.1% prospective yield (with 2.7x cover).