Interim report
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RNS Half-year/Interim Report HALF-YEAR RESULTS BEGBIES TRAYNOR GROUP PLC Released 07:00:03 10 December 2024 RNS Number : 4038P Begbies Traynor Group PLC 10 December 2024 Begbies Traynor Group plc Half year results for the six months ended 31 October 2024 "Strong financial performance with high double-digit revenue and profit Begbies Traynor Group plc (the 'company' or the 'group'), the professional services consultancy, tod results for the six months ended 31 October 2024. Financial overview 2024 2023 £m £m Revenue 76.3 65.9 Adjusted EBITDA1 15.3 12.8 Adjusted profit before tax2 11.5 9.9 Profit before tax 4.7 3.0 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 1/21
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Adjusted diluted EPS2 (p) 5.1 4.6 Diluted EPS (p) 1.3 0.8 Interim dividend (p) 1.4 1.3 Net (debt) cash3 (3.8) 1.1 Financial highlights - strong first half building on decade long track record of profitable growt · Revenue growth of 16% (11% organic, 5% acquired) · Adjusted EBITDA growth of 20% reflecting revenue growth and improved margins · Adjusted profit before tax growth of 16% · Increase in interim dividend extends our seven consecutive years of dividend growth since 2017 · Strong financial position and significant levels of headroom within committed bank facilities o Free cash flow increased by 8% o Net debt position at 31 October reflects significant payments in the period (acquisition ea buy-backs of £0.8m and dividends of £2.0m) o Well placed to continue investing in successful organic and acquisitive growth strategy Operating highlights - double digit organic growth across both divisions · Business recovery and advisory o Increased year on year insolvency activity levels in higher value cases o Market-leading position maintained (by volume of appointments) o Strong growth in advisory income reflecting benefit of recent investment and growth of th hires · Property advisory o Asset sales: strong growth driven by property auction volumes (organic and acquired) o Consultancy: continuing organic growth in building consultancy instructions together with growing the team o Valuations: robust activity levels reflecting supportive market volumes Current trading and outlook - in line with expectations · Confident of delivering full year results in line with current market expectations4 o Supportive market conditions and good activity levels across the business o Extending the group's strong financial track record of growth · On track to deliver medium-term revenue target of £200m · Q3 trading update will be issued in late February 2025 1 Adjusted EBITDA is operating profit before share based payments, depreciation, amortisation and non-underlying items arising due to acquisitio 2 Adjusted PBT is before non-underlying items arising due to acquisitions under IFRS. Adjusted EPS excludes these items and the related tax ef adjusted performance measures provide more meaningful information on the operating performance of the business. 3 Net debt (cash) includes cash and cash equivalents and borrowings but excludes IFRS 16 lease liabilities. 4 Current range of analyst forecasts for adjusted PBT of £23.0m-£24.3m (as compiled by the group) Commenting on the results, Ric Traynor, Executive Chairman of Begbies Traynor Group, said: 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 2/21
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"I am pleased to report a strong first half performance in which we have continued to execute our stra reporting high double-digit growth in revenue and profit. "This builds on a decade of profitable growth, which has been driven by investing in organic d enhancing M&A. Since 2014 we have tripled the size of the business with a six-fold increase in Building on this track record, we are making good progress towards our medium-term revenue target "Market conditions remain supportive for the group's service lines which is reflected in our current momentum across the business. This, together with our financial performance in the first six m confident of delivering current market expectations for the full year, which will extend our longstand profitable growth." There will be a webcast and conference call for analysts today at 9:00am. Please contact beg you would like to receive details. Enquiries please contact: Begbies Traynor Group plc 0161 837 17 Ric Traynor - Executive Chairman Nick Taylor - Group Finance Director Canaccord Genuity Limited 020 7523 835 (Nominated Adviser and Joint Broker) Emma Gabriel / Harry Pardoe Shore Capital 020 7408 40 (Joint Broker) Malachy McEntyre / Mark Percy / Anita Ghanekar / James Thomas MHP 07595 461 23 Reg Hoare / Katie Hunt / Charles Hirst begbies@mh Notes to editors Begbies Traynor Group plc is a leading UK advisory firm with expertise in business recovery, adviso valuations, asset sales and property consultancy. We have 1,300 colleagues operating from 45 locations across the UK, together with four offshore of professional teams include insolvency practitioners, accountants, lawyers, funding professionals and · Business recovery o Corporate and personal insolvency; contentious insolvency; creditor services · Advisory and corporate finance o Debt advisory and finance broking; corporate finance; special situations M&A; financial a · Valuations o Property, business and asset valuations · Asset sales o Property, plant and machinery auctions; property and business sales agency · Property consultancy 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 3/21
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o Building consultancy; transport planning; commercial property management; insurance a Further information can be accessed via the group's website at https://ir.begbies-traynorgroup.com/. CHAIRMAN'S STATEMENT INTRODUCTION I am pleased to report a strong first half performance in which we have continued to execute our stra reporting high double-digit revenue and profit growth. We have a proven growth strategy which has delivered a decade of profitable growth. This has b organic development and earnings enhancing M&A, resulting in a diversified and resilient business. S the size of the business with a six-fold increase in adjusted profit before tax. Building on this track re progress towards our medium-term revenue target of £200m. Business recovery has continued to grow organically with increased activity levels, notably in higher v group's largest service line and retains its leadership position in the UK market. We are ranked num of corporate appointments, second nationally for administrations and are well placed to continue deliv Our advisory teams reported strong organic growth in the period driven by instructions across re finance broking, special situations M&A and financial advisory. Advisory services have been an area we have expanded our team organically in the period through recruiting senior fee earners. As part business, we released the first two episodes of the BTG Advisory Restructuring Round-Up podcast. T on the current restructuring landscape and a discussion on the complementary advisory services prov Our property advisory division was created ten years ago with the acquisition of Eddisons in Decemb have significantly increased its scale, service offering and geographic presence driving annual inception to a current run rate in excess of £45m. Over this ten year trading period the business ha through the cycle and reported strong growth in revenue and profits. We have maintained this track record in the period with further strong growth, reflecting the benefits development of the business and the full year impact of prior year acquisitions. Across the group, we continue to invest in our people and processes. We have made further p learning and development support we provide to our colleagues, with bespoke training courses ac skills. We also continue to enhance our processes through increased use of technology to impro practices. We will continue to focus on driving efficiencies in the way we work as we face th employment costs from April 2025 following the October 2024 UK budget. We remain in a strong financial position with free cash flow in the period increasing by 8%. Our net d 2024 of £3.8m reflects the payment of acquisition earn outs of £4.1m, share buy-backs of £0.8m a April 2024: net debt of £1.4m, 31 October 2023: net cash of £1.1m). We have significant headroom i of £35m. Our cash generation, combined with our debt facilities, provides us with the flexibility to execute o grow our scale and range of services both organically and through acquisition. 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 4/21
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RESULTS Group revenue in the half year ended 31 October 2024 increased by 16% to £76.3m (2023: £6 increased by 20% to £15.3m (2023: £12.8m). Adjusted profit before tax2 increased by 16% to £11.5m profit before tax increased by 57% to £4.7m (2023: £3.0m). Adjusted diluted earnings per share2 increased by 11% to 5.1p (2023: 4.6p). Diluted earnings per sha Net debt3 as at 31 October 2024 was £3.8m (30 April 2024: net debt of £1.4m, 31 October 2023: acquisition earn out payments of £4.1m, share buy-backs of £0.8m and dividends of £2.0m. 1. Adjusted EBITDA is operating profit before share based payments, depreciation, amortisation and non-underlying items arisin 2. Adjusted PBT is before non-underlying items arising due to acquisitions under IFRS. Adjusted EPS excludes these items and believe that these adjusted performance measures provide more meaningful information on the operating performance of the 3. Net debt (cash) includes cash and cash equivalents and borrowings but excludes IFRS 16 lease liabilities. DIVIDEND The board is pleased to declare an 8% increase in the interim dividend to 1.4p (2023: 1.3p), wh consecutive years of dividend growth since 2017 and reflects our confidence in sustaining our financ group's financial position and prospects. We remain committed to a long-term progressive dividend p of the group's earnings growth, our investment plans and cash requirements, together with the marke The interim dividend will be paid on 7 May 2025 to shareholders on the register on 11 April 2025, with ex-dividend date of 10 April 2025. OUTLOOK The group's financial performance in the first six months underpins the board's confidence in expectations1 for the full year, which will extend our strong financial track record of growth. Market conditions remain supportive for the group's service lines and this is reflected in good a momentum across the business. UK insolvencies remain at elevated levels. We anticipate continuing growth in business recovery, o businesses face continuing demand pressures and cost challenges, including the recent rise in cost the prospect of higher-for-longer interest rates. With our expanded team, we have the capacity an provide the advice and support required by our clients in such circumstances. We continue to invest team, which has a healthy pipeline of engagements. Our property advisory teams have ongoing positive momentum and are well-placed to maint performance from the first half year across our three key areas of asset sales, consultancy and valuat 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 5/21
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Our broad range of services, diversified client base, organic growth initiatives and pipeline of acquis us confident of continuing to build upon our strong track record of growth in the current year and beyo We will provide an update on third quarter trading in late February 2025. 1. Current range of analyst forecasts for adjusted PBT of £23.0m-£24.3m (as compiled by the group) Ric Traynor Executive Chairman 10 December 2024 BUSINESS REVIEW OPERATING REVIEW Operating result Strong operating performance in the period increasing revenue by £10.4m to £76.3m (2023: £65.9 16% (11% organic, 5% acquired). Operating profits increased by £1.9m (18%) to £12.6m (2023: £10. Operating performance by segment is detailed below: 6 months to 31 Oct 2024 £m 6 months to 31 Oct 2023 £m Revenue Business recovery and advisory 52.8 47.0 12% (12% Property advisory 23.5 18.9 24% (8% 76.3 65.9 16% (11% Operating profit Business recovery and advisory 13.6 11.6 Property advisory 3.9 3.5 Group services (4.9) (4.4) 12.6 10.7 Margins Segmental margins · Business recovery and advisory 25.8% 24.7% · Property advisory 16.6% 18.5% Group services as % of revenue 6.4% 6.7% Operating margins 16.5% 16.2% Operating margins improved to 16.5% (2023: 16.2%) reflecting: · business recovery and advisory improved margins reflecting improved activity levels; · property advisory margins normalised following additional consultancy fees in the prior year ( together with organic investment; 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 6/21
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· group services costs as a percentage of revenue reduced. Markets The marketplace for our advisory services continues to provide a positive environment for developing Insolvency Corporate insolvencies remained at elevated levels in the 12 months ended 31 October 20241 with 24 24,644). The total number of administrations (which typically involve larger and more complex ins period was 1,578 (2023: 1,575), which remains below the pre-pandemic levels in 2019 of c.1,800 app Commercial property The property advisory business has benefitted from supportive market activity levels. In the 12 mo 2024 there were 120,100 UK non-residential property transactions2 (2023: 119,120). This exte transaction levels experienced since 2021, albeit this is c.6% below pre-pandemic levels. In addition SMEs3 increased to £60.0bn at 30 September 2024 (2023: £57.7bn). 1. Insolvency Service statistics on the number of corporate insolvencies in England and Wales on a for the 12 months ended 31 October 2. HMRC UK monthly property transactions commentary updated 31 October 2024 3. Bank of England Bankstats tables showing loan amounts outstanding to UK small and medium-s buying, selling and renting of own or leased real estate (ZKP5) Business recovery and advisory Our business recovery teams have experienced increased demand in the period, notably in highe market-leader by volume we continue to benefit from our extensive national coverage and strong digit Insolvency revenue increased by 7% in the period to £41.4m (2023: £38.8m) and the insolvency o contingent and non-contingent fees) increased to £76.4m (30 April 2024: £71.9m, 31 October contingent element increased to £38.8m (30 April 2024: £36.3m, 31 October 2023: £35.0m). Notable insolvency appointments during the period included the administrations of Caskade (hospitality), Strabens Hall (financial services), Beck Interiors (construction) and AAD Transport ( number of large restructuring engagements. Our advisory team reported strong growth in the period with revenue increasing by 39% to £11.4m range of restructuring, debt advisory, finance broking, special situations M&A and financial advi finance activities remained subdued reflecting general uncertainty in the lead up to the October 2024 We have continued to invest in growing our advisory team and have appointed four partners an London, Manchester and Leeds offices. Their expertise covers special situations M&A, forensics a 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 7/21
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expanded team will continue to develop and enhance our reputation for larger and more comple formal insolvency and advisory. On these appointments, we are able to deliver the best value to sta our broad range of expertise across restructuring, debt advisory, funding, valuations and asset sales. Property advisory We have seen strong growth in the period from our asset sales team, driven by property auctions. F SDL Property Auctions in December 2023, we have made good progress in its integration, which w financial year. In the period we experienced organic growth in auction lots across the combined bu strong market position and a growing market backdrop. Our building consultancy team, delivering projects and development activity, continued to expand in activity levels across a broad client base. We have continued to invest organically in growing th including enhancing our sustainability expertise. We reported increased revenue from our valuations team following the prior year acquisition and Forbes valuation practice in November 2023. Organic activity levels were robust, reflecting the stable We have continued to invest in growing our team in the period through recruiting experienced char our building consultancy and valuations teams. People and processes The average number of full-time equivalent (FTE) partners and employees working in the group ove to both organic investment and prior year acquisitions. Over the last year, the number of fee-earnin increased by 7% to 947 (3% since the start of the financial year). 6 months to 31 Oct 2024 6 months to 31 Oct 2023 Business recovery and advisory Property advisory Group services Total Business recovery and advisory Property advisory Grou service Fee earners 596 351 - 947 566 320 Support teams 64 23 67 154 77 24 6 Total 660 374 67 1,101 643 344 6 We have continued to invest in our people, notably through continuing to enhance our learning a During the period, we delivered a leadership development programme to over 200 of our senior b commenced a series of 'live-learns' providing convenient remote training sessions on core sk maximising the benefit of Microsoft tools, using LinkedIn for business development and the oppo workplace. We have gained CPD accreditation for a number of our courses which enables our pro element of their professional development on bespoke in-house courses. In the period, we launched our fourth save as you earn scheme for all qualifying colleagues. 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 8/21
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We have continued to make progress in our process improvement initiatives across our operatio improved ways of working, making the best use of technology. FINANCE REVIEW Financial summary 6 months to 31 Oct 2024 6 months to 31 Oct 2023 1 £m £m Revenue 76.3 65.9 Adjusted EBITDA 15.3 12.8 Share-based payments (0.5) (0.2) Depreciation (2.2) (1.9) Operating profit (before non-underlying items) 12.6 10.7 Finance costs (1.1) (0.8) Adjusted profit before tax 11.5 9.9 Non-underlying items (6.8) (6.9) Profit before tax 4.7 3.0 Tax on profits on ordinary activities (2.5) (1.8) Profit for the period 2.2 1.2 Adjusted EBITDA increased by 20% to £15.3m (2023: £12.8m) with non-cash costs (share-based pa increasing to £2.7m (2023: £2.1m). Finance costs increased to £1.1m (2023: £0.8m) principally due to higher levels of net debt following own shares and higher IFRS 16 interest charges. Adjusted profit before tax increased by 16% to £11.5m (2023: £9.9m). Non-underlying items The non-underlying items detailed below all arise due to acquisition accounting. Under IFRS, acquisition consideration which is contingent on the selling shareholders remaining wi the statement of comprehensive income, rather than being capitalised within non-current assets. Th agreed in the terms of the sale and purchase agreements, are designed to preserve the value relationships acquired in the business combinations. As a result of this treatment of consideration, ne number of acquisitions which is credited to income in the year of acquisition. 6 months to 31 Oct 2024 6 months to 31 Oct 2023 1 £m £m 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 9/21
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Acquisition consideration (deemed remuneration in accordance with IFRS 3) 4.9 4.5 Negative goodwill (gain on acquisition) - (0.7) Transaction costs - 0.1 Amortisation of intangible assets recognised on acquisition accounting 1.9 3.0 6.8 6.9 Tax The overall tax charge for the period was £2.5m (2023: £1.8m) as detailed below: 6 months to 31 Oct 2024 6 months to 31 Oct 2 Profit before tax Tax Profit after tax Effective rate Profit before tax Tax Profit after tax £m £m £m £m £m £m Adjusted 11.5 (3.0) 8.5 26% 9.9 (2.6) 7.3 Non-underlying items: Amortisation (1.9) 0.5 (1.4) 25% (3.0) 0.8 (2.2) Other non-underlying items (4.9) - (4.9) - (3.9) - (3.9) Tax on ordinary activities 4.7 (2.5) 2.2 53% 3.0 (1.8) 1.2 The adjusted tax rate of 26% is based on the expected rate for the full year. Earnings per share (EPS) Adjusted basic EPS1 increased by 17% to 5.4p (2023: 4.6p) resulting from the growth in adjus increased to 1.4p (2023: 0.8p). Adjusted diluted EPS1 increased by 11% to 5.1p (2023: 4.6p), reflecting increased dilutive potentia the granting of options under the group's performance share plan and the maturity of equity settled ea earnings per share increased to 1.3p (2023: 0.8p). 1. See reconciliation in note 5 Liquidity The group remains in a strong financial position. At 31 October 2024, the group had net debt of £3.8 of £1.4m, 31 October 2023: net cash of £1.1m), represented by cash balances of £4.2m (2023: £8.1 facilities of £8.0m (2023: £7.0m). All bank covenants were comfortably met during the period. 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 10/21
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We have significant levels of headroom in our bank facilities which are committed until February extension options, giving a potential maturity date of February 2029. Our total facilities of £35m comprise: · £25m committed, unsecured revolving credit facility. · £10m accordion facility, allowing further debt capacity to support the group's growth strategy, subj Cash flow Cash flow in the period is summarised as follows: 6 months to 31 Oct 2024 £m 6 months to 31 Oct 2023 £m Adjusted EBITDA 15.3 12.8 Working capital (5.7) (4.6) Cash generated by operations 9.6 8.2 Tax (1.9) (1.8) Interest (1.0) (0.9) Capital expenditure (1.0) (0.8) Capital element of lease payments (1.4) (0.7) Free cash flow 4.3 4.0 Acquisition consideration payments (net of cash acquired)1 (4.1) (3.9) Transaction costs - (0.1) Purchase of own shares (0.8) - Net proceeds from share issues 0.2 - Dividends (2.0) (1.9) Net cash outflow (2.4) (1.9) Cash from operating activities (before acquisition consideration payments) was £9.6m (2023: £8.2m) of £2.5m. Working capital absorption of £5.7m (2023: £4.6m) resulted from organic revenue gro payments (prior-year bonuses paid and prepaid annual costs). Lock up2 at 31 October 2024 was 4.3 months, 31 October 2023: 4.0 months). Free cash flow in the period increased by 8% to £4.3m (2023: £4.0m). Acquisition consideration payments of £4.1m in the period related to contingent payments in respect Following these payments, the estimate of future contingent consideration payments is £15.2m, December 2027. The purchase of own shares of £0.8m related to EBT share purchases of £0.1m and the sh (announced on 21 October 2024) of £0.7m. The share buyback programme completed on 7 Novemb 1. Including deemed remuneration under IFRS3 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 11/21
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2. Lock up determined by unbilled income and trade receivables (net of impairment provision) less d compared to TTM revenue Net assets Net assets as at 31 October 2024 were £76.3m, compared to £78.4m as at 30 April 2024. The increase of £8.5m from post-tax adjusted earnings, £2.1m from shares issued by the EBT and £0 share based payments and other share issues, offset by dividends of £6.3m and the post-tax im transaction and amortisation costs of £6.3m and £0.8m in relation to shares acquired as part of the sh Ric Traynor Nick Taylor Executive chairman Group finance director 10 December 2024 10 December 2024 Consolidated statement of comprehensive income Six months ended Six months ended 31 October 2024 31 October 2023 3 (unaudited) (unaudited) Underlying Non- underlying Total Underlying Non- underlying Total Underlying Note £m £m £m £m £m £m £m Revenue 2 76.3 - 76.3 65.9 - 65.9 136.7 Direct costs (43.9) - (43.9) (38.1) - (38.1) (77.8) Gross profit 32.4 - 32.4 27.8 - 27.8 58.9 Other operating income 0.2 - 0.2 0.4 - 0.4 0.5 Administrative expenses (20.0) (6.8) (26.8) (17.5) (6.9) (24.4) (35.5) Operating profit 2 12.6 (6.8) 5.8 10.7 (6.9) 3.8 23.9 Finance costs 4 (1.1) - (1.1) (0.8) - (0.8) (1.9) Profit before tax 11.5 (6.8) 4.7 9.9 (6.9) 3.0 22.0 Tax on profits on ordinary activities (3.0) 0.5 (2.5) (2.6) 0.8 (1.8) (5.7) Profit and total comprehensive income for the period 8.5 (6.3) 2.2 7.3 (6.1) 1.2 16.3 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 12/21
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Earnings per share Basic 5 1.4p 0.8p Diluted 5 1.3p 0.8p All of the profit and comprehensive income for the period is attributable to equity holde Consolidated statement of changes in equity For the six months ended 31 October 2024 (unaudited) Share capital Share premium Merger reserve Capital redemption reserve sh res £m £m £m £m At 1 May 2024 8.0 30.5 28.3 0.3 (2 Total comprehensive income for the period - - - - Dividends - - - - Credit to equity for equity-settled share-based payments - - - - Other share options - 0.2 - - Own shares acquired - - - - (0 Own shares issued - - - - At 31 October 2024 8.0 30.7 28.3 0.3 (0 For the six months ended 31 October 2023 (unaudited) Share capital Share premium Merger reserve Capital redemption reserve Ow shar reserv £m £m £m £m £ At 1 May 2023 7.7 30.0 27.9 0.3 Total comprehensive income for the period - - - - Dividends - - - - Shares issued as consideration for acquisitions - - 0.4 - Other share options 0.2 - - - At 31 October 2023 7.9 30.0 28.3 0.3 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 13/21
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For the year ended 30 April 2024 (audited) Share capital Share premium Merger reserve Capital redemption reserve Ow shar reserv £m £m £m £m £ At 1 May 2023 7.7 30.0 27.9 0.3 Total comprehensive income for the period - - - - Dividends - - - - Credit to equity for equity-settled share-based payments - - - - Shares issued as consideration for acquisitions - - 0.4 - Other share options 0.3 0.5 - - Own shares acquired - - - - (2.9 At 30 April 2024 8.0 30.5 28.3 0.3 (2.9 Consolidated balance sheet 31 October 2024 (unaudited) 31 October 202 (unaudited Note £m £ Non-current assets Intangible assets 70.5 71. Property, plant and equipment 2.6 2. Right of use assets 10.9 9. Trade and other receivables 7 1.4 4. 85.4 87. Current assets Trade and other receivables 7 69.5 60. Current tax receivable - Cash and cash equivalents 4.2 8. 73.7 68. Total assets 159.1 156. Current liabilities Trade and other payables 8 (52.0) (46.2 Current tax liabilities (0.9) (2.0 Lease liabilities (2.8) (2.2 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 14/21
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Provisions (1.2) (1.1 (56.9) (51.5 Net current assets 16.8 16. Non-current liabilities Borrowings (8.0) (7.0 Lease liabilities (8.6) (8.2 Provisions (2.8) (2.3 Deferred tax (6.5) (6.8 (25.9) (24.3 Total liabilities (82.8) (75.8 Net assets 76.3 80. Equity Share capital 8.0 7. Share premium 30.7 30. Merger reserve 28.3 28. Capital redemption reserve 0.3 0. Own shares reserve (0.9) Retained earnings 9.9 13. Equity attributable to owners of the company 76.3 80. Consolidated cash flow statement Six months ended 31 October 2024 (unaudited) Six months end 31 October 20 (unaudite Note £m £ Cash generated by operations 9 9.6 8 Income taxes paid (1.9) (1. Interest paid on borrowings (0.6) (0. Interest paid on lease liabilities (0.4) (0. Net cash from operating activities (before acquisition payments) 6.7 5 Transaction costs - (0. Acquisition consideration payments (which are deemed remuneration under IFRS 3) (4.1) (4. 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 15/21
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Net cash from operating activities 2.6 1 Investing activities Purchase of property, plant and equipment (1.0) (0. Acquisition consideration payments - (0. Net cash acquired in acquisition of businesses - 0 Net cash used in investing activities (1.0) (0. Financing activities Dividends paid (2.0) (1. Proceeds on issue of shares 0.2 Purchase of own shares (0.8) Capital element of lease payments (1.4) (0. Drawdown of loans 1.0 2 Net cash used in financing activities (3.0) (0. Net (decrease) increase in cash and cash equivalents (1.4) 0 Cash and cash equivalents at beginning of period 5.6 8 Cash and cash equivalents at end of period 4.2 8 1. Basis of preparation and accounting policies (a) Basis of preparation The half year condensed consolidated financial statements do not include all of the information and annual financial statements and should be read in conjunction with the group's annual financial stat which have been prepared in accordance with UK adopted International Accounting Standards. This condensed consolidated half year financial information does not comprise statutory accounts within of the Companies Act 2006. Statutory accounts for the year ended 30 April 2024 were approved by the 8 July 2024 and delivered to the Registrar of Companies. The report of the auditor on those accou include a reference to any matters to which the auditor drew attention by way of emphasis without qual contain statements under section 498 (2) or (3) of the Companies Act 2006. The directors have reviewed the financial resources available to the group and have concluded that th This conclusion is based upon, amongst other matters, a review of the group's financial projections fo following the date of this announcement, together with a review of the cash and committed borrow group. Accordingly, the going concern basis has been used in preparing these half year conde statements. The condensed consolidated financial statements for the six months ended 31 October 2024 have not an interim review by the auditors. IAS 34 'Interim financial reporting' is not applicable to these half y 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 16/21
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financial statements and has therefore not been applied. (b) Significant accounting policies The accounting policies adopted in preparation of the half year condensed consolidated financial sta those followed in the preparation of the group's annual financial statements for the year ended 30 April 2 2. Segmental analysis by class of business Six months ended 31 October 2024 (unaudited) Six months 31 Octobe (una £m Revenue Business recovery and financial advisory 52.8 Property advisory 23.5 76.3 Operating profit before non-underlying items Business recovery and financial advisory 13.6 Property advisory 3.9 Group services (4.9) 12.6 3. Non-underlying items Six months ended 31 October 2024 (unaudited) Six months 31 Octobe (una £m Acquisition consideration (deemed remuneration in accordance with IFRS 3) 4.9 Transaction costs - Negative goodwill - Amortisation of intangible assets arising on acquisitions 1.9 6.8 4. Finance costs Six months ended 31 October 2024 (unaudited) Six months 31 Octobe (una £m Interest on bank loans 0.6 Finance charge on lease liabilities 0.4 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 17/21
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Finance charge on dilapidations provisions 0.1 1.1 5. Earnings per share The calculation of the basic and diluted earnings per share is based on the following data: Six months ended 31 October 2024 (unaudited) Six months 31 Octobe (una £m Earnings Profit for the period attributable to equity holders 2.2 31 October 2024 (unaudited) 31 Octobe (una million Number of shares Weighted average number of ordinary shares for the purposes of basic earnings per share 158.5 Effect of dilutive potential ordinary shares: Share options 5.1 Contingent shares 1.8 Weighted average number of ordinary shares for the purposes of diluted earnings per share 165.4 Six months ended 31 October 2024 (unaudited) Six months 31 Octobe (una pence Basic earnings per share 1.4 Diluted earnings per share 1.3 The following additional earnings per share figures are presented as the directors belie understanding of the trading position of the group, as they exclude the accounting cha acquisitions in accordance with IFRS 3 and are not influenced by the day-to-day operations o Six months ended 31 October 2024 (unaudited) Six months 31 Octobe (una 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 18/21
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£m Earnings Profit for the period attributable to equity holders 2.2 Non-underlying items 6.8 Tax effect of above items (0.5) Adjusted earnings 8.5 Six months ended 31 October 2024 (unaudited) Six months 31 Octobe (una pence Adjusted basic earnings per share 5.4 Adjusted diluted earnings per share 5.1 6. Dividends The interim dividend of 1.4p (2023: 1.3p) per share (not recognised as a liability at 31 October 2024) w to ordinary shareholders on the register at 11 April 2025. The final dividend of 2.7p per share as pr financial statements and approved at the group's AGM was paid on 6 November 2024 and was re October 2024. 7. Trade and other receivables 31 October 2024 (unaudited) 31 O £m Non current Deemed remuneration 1.4 Current Trade receivables 14.2 Unbilled income 49.2 Other debtors and prepayments 4.4 Deemed remuneration 1.7 69.5 8. Trade and other payables 31 October 2024 (unaudited) 31 O £m Current Trade payables 2.2 Accruals 10.4 Final dividend 4.2 Other taxes and social security 5.7 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 19/21
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Deferred income 7.9 Other creditors 16.7 Deferred consideration 0.9 Deemed remuneration liabilities 4.0 52.0 9. Reconciliation to the cash flow statement 31 October 2024 (unaudited) 31 O £m Profit for the period 2.2 Adjustments for: Tax 2.5 Finance costs 1.1 Depreciation of property, plant and equipment 0.6 Depreciation of right of use assets 1.5 Amortisation of intangible assets 0.1 Non underlying operating costs 6.8 Share-based payment expense 0.5 Operating cash flows before movements in working capital 15.3 Increase in receivables (6.7) Increase (decrease) in payables 1.0 (Decrease) in provisions - Cash generated by operations 9.6 This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END IR QKCBNOBDDPBK London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 20/21
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should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply. © 2024 London Stock Exchange plc. All rights reserved. 2024-12-10 09:36 Half-year Results - 07:00:03 10 Dec 2024 - BEG News article | London Stock Exchange https://www.londonstockexchange.com/news-article/BEG/half-year-results/16803221 21/21