Professional services restructuring specialist Begbies Traynor has said it would report a double-digit revenue boost this year thanks to the economic recovery.
It said revenue is expected to jump by around 12 per cent to £136m over the last financial year, up from the £121.8m recorded in 2023
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to increase by around nine per cent to £29m (2023: £26.6m), as the firm states are “ahead of market expectations”.
Back in February, Begbies Traynor agreed on a new debt facility with HSBC, replacing its existing facility with the same bank. The new debt facility with HSBC sees £25m committed to an unchanged, unsecured revolving credit facility.
Net debt would be lower than anticipated it said, at £1.4m on 30 April 2024 (2023: net cash of £3m).
Its property advisory and transactional services business had the best year, as its revenue growth is expected to be around 25 per cent. Meanwhile, its business recovery and advisory business revenue is expected to grow by seven per cent.
Over the last financial year, Begbies Traynor completed four acquisitions, including Banks Long & Co in Lincoln, Jones Giles & Clay in Cardiff, Andrew Forbes in Bristol and SDL auctions in Nottingham. The firm outlined that these acquisitions contributed around £5m to its revenue.
The group will report its final results for the year ended 30 April 2024 on Tuesday 9 July 2024.
Commenting on the results, Ric Traynor, executive chairman said: “We have delivered another strong performance, with EBITDA ahead of market expectations and net debt lower than anticipated.”
“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.”
“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,” he added.
Begbies Traynor stock is up over 2 per cent this morning as it trades at 107.50p per share on Tuesday.