Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — FY2023 Earnings Presentation
28 slides from Btg Consulting's earnings presentation, July 2023
Slide 1: Full year results presentation
Full year results presentation Ric Traynor – Executive Chairman Nick Taylor – Group Finance Director July 2023
Slide 2: Disclaimer
Disclaimer The information contained in this document (the “Presentation”) has been prepared by, and is the sole responsibility of, Begbies Traynor Group plc (the “Company”) and is for information purposes only. This Presentation has not been approved by an authorised person in accordance with Secti
Slide 3: A leading professional services consultancy with a differentiated service offering
A leading professional services consultancy with a differentiated service offering 80% of 2023 revenue from insolvency and defensive activities from a common network of clients and professionals 2
Slide 4: Highlights – results ahead of original expectations
Highlights – results ahead of original expectations REVENUE • Double digit revenue and profit growth across both divisions £121.8m (+11%) (2022: £110.0m) • Increased insolvency appointments and enhanced mid-market reputation ADJUSTED PROFIT BEFORE TAX £20.7m (+16%) (2022: £17.8m) • Acquisitions in f
Slide 5: Financial and operating review
Financial and operating review 4
Slide 6: Financial highlights
Financial highlights £m 2023 2022 Revenue 121.8 110.0 Adjusted EBITDA 26.6 23.9 Operating profit (before amortisation and transaction costs) 21.8 18.6 Margin 17.9% 16.9% Adjusted profit before tax 20.7 17.8 Adjusted basic EPS 10.5p 9.1p Dividend per share 3.8p 3.5p Net cash 3.0 4.7 • Revenue growth
Slide 7: Insolvency and advisory
Insolvency and advisory • Revenue growth of 10% (6% organic) • Increase in activity levels • Benefit from Mantra acquisition • Margins increased to 26.8% (2022: 25.8%) giving profit increase of 14% • Insolvency revenue increased by £3.9m to £70.6m (2022: £66.7m) 19 • Higher levels of insolvency appo
Slide 8: Property advisory and transactional services
Property advisory and transactional services • Revenue growth of 12% (3% organic) • current year and prior year acquisitions • organic growth of resilient service lines • Margins increased to 17.8% (2022: 16.8%) giving profit increase of 19% 19 • Transactions (35%) • Valuations (25%) • Auction activ
Slide 9: Group remains in a strong financial position
Group remains in a strong financial position £m 2023 2022 Adjusted EBITDA 26.6 23.9 Working capital (2.2) (1.6) Cash from operating activities 24.4 22.3 Tax - includes accelerated payment of £1.0m (5.3) (3.6) Other payments (provisions, interest, capex, lease payments) (5.0) (4.7) Free cash flow 14.
Slide 10: Outlook - confident of further year of growth
Outlook - confident of further year of growth • Confident of outlook, in line with current market expectations* - anticipate cost increases (inflation and investment) offset by revenue growth • Insolvency well-placed to continue track record of growth • Benefit from recent insolvency appointments an
Slide 11: Strategic review
Strategic review O Begbies Traynor Group 10
Slide 12: UK insolvencies continue to increase
UK insolvencies continue to increase • Now higher than comparable pre-pandemic period • Increase largely from liquidations (typically insolvencies of smaller companies) • Administrations (typically larger and more complex insolvencies) have begun to increase • Higher than post-pandemic lows in 2021
Slide 13: Market-leading position enhanced
Market-leading position enhanced Ranked first for overall appointments – 13% share Largest appointment Number of corporate Ranked second for administrations – 11% share takers appointments (improvement from fourth place over last five years) Begbies Traynor 2,871 Other national specialists 2,325 Fir
Slide 14: Insolvency: significant growth and well-placed as market leader
Insolvency: significant growth and well-placed as market leader • Insolvency revenue has doubled to £71m since 2019 • Compared to market volumes up 37% • Extensive network of over 4,000 professionals & institutions • c.50% referring work regularly • Well-established routes to market • 70% of work ge
Slide 15: Advisory and transactional services now 40% of revenue
Advisory and transactional services now 40% of revenue • Developed from a standing start in 2014 - revenue doubled to £51m since 2019 • Balanced mix of services across both operating divisions • Counter-cyclical, defensive and pro-cyclical • c.75% of income derived from recurring sources • Establish
Slide 16: Integrated expertise enhancing outcome for stakeholders
Integrated expertise enhancing outcome for stakeholders Case study of ongoing significant administration appointment • Advisory work completed prior to insolvency • Evaluating business recovery options from distressed financial position • No solvent solution and so appointed as administrators • Comp
Slide 17: Complementary services adding value and enhancing returns
Complementary services adding value and enhancing returns • Integrated insolvency expertise enhances outcome for stakeholders • Advisory skills – forensic and investigations, financial advisory, M&A • Asset valuation and disposal • Specialist insurance and property protection • Cross-selling of serv
Slide 18: Proven growth strategy enhancing shareholder value
Proven growth strategy enhancing shareholder value To enhance value through the delivery of strong, sustainable financial performance Organic growth Acquisition strategy • Retention and development of our existing • Value-accretive acquisitions in any of the partners and employees following market s
Slide 19: Acquisitions accelerating growth
Acquisitions accelerating growth • Significant increase in scale of group resulting from growth strategy • Well-established process for identification, valuation, acquisition and integration of target businesses • 12 value enhancing acquisitions delivering revenue and operating synergies • Cash gene
Slide 20: Strong financial track record delivering shareholder value
Strong financial track record delivering shareholder value 26% annual increase in TSR (CAGR) 19 19
Slide 21: Summary - strong position and confident of delivering further growth
Summary - strong position and confident of delivering further growth • Strong platform to continue delivering our strategy of organic and acquired growth • Increased scale of group with broadened base of expertise • Enhanced client base and professional referral network • Well-positioned in the curr
Slide 22: Questions
Questions O Begbies Traynor Group 21
Slide 23: Appendix
Appendix O Begbies Traynor Group 22
Slide 24: Advisory and transactional services (1)
Advisory and transactional services (1) Financial advisory Funding Transactional support • Complementary to • New service line following • Auctions insolvency two recent acquisitions • Property and plant and machinery auctions • Business and financial • High level of repeat clients • Benefit to inso
Slide 25: Advisory and transactional services (2)
Advisory and transactional services (2) Valuations Projects and development Asset management and insurance • Valuing commercial property, • Building and projects team • Commercial property management businesses and assets • Client base investors, corporate • Project management, building • Over 90% o
Slide 26: FY24 analyst metrics
FY24 analyst metrics • Anticipate organic cost increases (inflation and investment) of c.7% to be offset by increased revenue • Acquisitions: revenue £4m and profit £0.7m - full year impact of FY23 and part year of FY24 • Central costs to remain broadly unchanged as % of revenue • As a result of abo
Slide 27: Ownership structure
Ownership structure The group has 154.9m shares in issue. The ownership profile is: Name % holding Ric Traynor 17.6 Other directors 1.5 Major institutions: • Close Brothers 6.8 • Amati Global Investors 6.7 • OVMK Vermogensbeheer 5.1 • Slater Investments 4.2 • Gresham House Asset Management 3.3 • Riv
Slide 28: Offices across the UK
Offices across the UK. www.begbies-traynorgroup.com Begbies Traynor Group plc; registered in England No: 5120043, registered office: 340 Deansgate, Manchester, M3 4LY, a member of the Begbies Traynor Group; Specialist Professional Services.