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Begbies Traynor Group PLC on Tuesday said it expects to report increased revenue and earnings for its latest financial year.
The Manchester-based recovery, financial advisory and property services consultancy said that for the year to April 30, it expects revenue to have risen by around 12%. It should total approximately £136 million, up from £121.8 million the previous year and within the market guidance range of £134.0 million to £135.2 million.
Begbies Traynor also said it anticipates revenue growth of around 7% for its Business Recovery & Advisory division, and ‘strong growth’ of about 25% in Property Advisory & Transactional Services ‘driven by both acquisitions and organic development’.
The company expects adjusted earnings before interest, tax, depreciation & amortisation to rise by about 9% to around £29 million from £26.6 million, ahead of market expectations of between £27.7 million and £28.4 million.
It also anticipates an approximate 6% rise in adjusted pretax profit to about £22 million from £20.7 million, within the consensus range of £21.9 million to £22.5 million.
Finally, Begbies Traynor said it expects net debt to be ‘lower than anticipated’, beating guidance of between £2.0 million and £3.2 million to reach £1.4 million at April 30. This would compare with net cash of £3.0 million one year prior, but the company still noted that it ‘reflects better than anticipated cash generation in the final quarter’.
The firm also noted its new £35 million debt facility agreed with HSBC, which it announced back in February.
‘We have delivered another strong performance, with Ebitda ahead of market expectations and net debt lower than anticipated,’ commented Executive Chair Ric Traynor. ‘This was driven by increased activity levels in business recovery, which maintained its market-leading position by volume, and very strong growth across our property advisory and transactional services teams.’
He continued: ‘The group’s cash generation, combined with the significant headroom within our new debt facility, provides us with the flexibility to execute our strategy to continue to grow our scale and range of services both organically and through acquisition.
‘We expect business recovery activity levels to remain strong, combined with a recovery in M&A activities and the continued growth across our property services business.
‘We are therefore confident of continuing to build upon our long track record of growth in the current year and beyond.’
Begbies Traynor shares traded 1.2% higher at 106.30 pence on Tuesday afternoon in London.
The firm plans to release its annual results on July 9.
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