Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — H1 2019 Earnings Presentation
28 slides from Btg Consulting's earnings presentation, December 2018
Slide 1: Half year results presentation
Half year results presentation Ric Traynor – Executive Chairman Nick Taylor – Group Finance Director December 2018
Slide 2: A good first half performance
A good first half performance Revenue Adjusted Adjusted Interim PBT EPS dividend £28.0m £3.2m 2.2p 0.8p (2017: £26.0m) (2017: £2.9m) (2017: 2.0p) (2017: 0.7p) Increased activity Well placed to Reduced net debt Initial contributions from organic deliver current further and from prior year investments
Slide 3: Financial review
Financial review O Begbies Traynor Group
Slide 4: Income statement
Income statement Six months Six months Year ended ended ended £m 31 Oct 18 31 Oct 17 30 Apr 18 Revenue 28.0 26.0 52.4 Operating profit (before amortisation and transaction costs) 3.4 3.1 6.1 Interest costs (0.2) (0.2) (0.5) Adjusted profit before tax 3.2 2.9 5.6 Transaction costs (1.4) (1.0) (1.4) A
Slide 5: Segmental performance
Segmental performance Business recovery and advisory Six months Six months Revenue increase due to: £m ended ended First time contribution from Springboard acquisition 31 Oct 18 31 Oct 17 Increase in activity levels with higher level of insolvency appointments; partially offset by Business rec
Slide 6: New accounting standards
New accounting standards • IFRS 15 ‘Revenue from Contracts with Customers’ • new model for revenue recognition, based upon transfer of control rather than transfer of risk and rewards • on majority of group’s engagements no change in point of recognition • on two of group’s engagement types will be
Slide 7: Balance sheet
Balance sheet • Non current assets: reduction due to acquisition accounting charges £m 31 Oct 18 30 Apr 18 31 Oct 17 Non current assets 60.6 62.3 58.9 • Current assets reduced to £28.9m - without adoption of new accounting policies £30.2m (Apr 18: £30.8m) Current assets 28.9 30.8 28.8 • Receivables
Slide 8: Cash flow
Cash flow Six months Six months Year • Operating: ended ended ended • Solid operating cash generation in the period £m 31 Oct 18 31 Oct 17 30 Apr 18 • Comparative included working capital benefits Cash from operations 3.2 4.9 9.1 • Tax payments of £0.6m (2017: £0.4m) Tax (0.6) (0.4) (1.0) • Interest
Slide 9: Extended banking facilities
Extended banking facilities • Agreed a two year extension to existing banking facilities • Commercial terms unchanged • Provided by HSBC on unsecured basis • £25m committed revolving credit facility; and • £5m uncommitted acquisition facility • August 2023 maturity • Significant headroom in committe
Slide 10: Full year financial guidance
Full year financial guidance • Adjusted tax rate 22% (FY18: 22%) • Transaction/amortisation costs: • Deemed remuneration £1.3m (Full year: £2.7m) • Amortisation £1.1m (Full year: £2.2m) • Anticipate second half increase in net debt (in line with previous guidance) due to: • Arrangement fees for bank
Slide 11: Full year outlook
Full year outlook • Business recovery and advisory: • Expect stronger second half profit performance due to: • anticipated completion of number of contingent fee engagements; and • higher activity levels • Operating costs to reflect incremental bonus and ongoing investment costs • Property: • Revenu
Slide 12: Business review
Business review O Begbies Traynor Group a
Slide 13: Our operating businesses
Our operating businesses oO Begbies Traynor ©) BTG Advisory "sre Springboard cddisors =~ DP Paro ics Begbies Traynor is the UK's leading independent business recovery practice handling the largest number of corporate appointments, principally serving the mid-market and smaller companies. BTG Advisor
Slide 14: Business recovery and financial advisory
Business recovery and financial advisory • Insolvency market: • Increase in activity levels over last year – 12 months ended Sep 18: 15,789 (Sep 17: 14,923), increase of 6% • Follows three years between 2015 and 2017 of c14,700 pa - lowest level since 2004 • Increase in activity levels in the period
Slide 15: Notable cases
Notable cases 18 [BIC] THE s8@2sTIMES sky Fees NEWS THE 28sTIMES House of Frase1 rs way for cuts Blue ine fiers es Cea becoming fashion victim again Sa freideokeh rounders ‘back in control’ Humberts is laid low by prime suspect ll Nal | O Begbies Traynor Group
Slide 16: Property services
Property services • Auctions - property, machinery and business assets (M&BA) • Integrated CJM team (acquired Feb 18) with existing Eddisons M&BA team • Developing internet auction platform for all asset sales • All M&BA auctions are completed on line • Initial on-line property auction planned for e
Slide 17: Strategy and expertise
Strategy and expertise O Begbies Traynor Group 16
Slide 18: Strategy
Strategy » To be recognised as a leading professional services consultancy » Business restructuring » UK businesses and insolvency » Financial institutions on fem » Transactional support and the investment delivering: ay 5 cena . te » Valuations and y S » business recovery, Fe ; . ov . . = a advisor
Slide 19: Our expertise
Our expertise Business Property recovery services Business restructuring and insolvency • Corporate recovery % of revenue a • Personal insolvency a • Restructuring • Property receiverships a • Machinery and business asset disposal a • Specialist insurance broking a Business a restructuring Transacti
Slide 20: Business development areas
Business development areas • Business recovery • Senior recruitment and selective acquisitions to increase market share • Continuing investment in internet marketing and direct work generation • Investment in technology to enhance working practices • Financial advisory • Grow corporate finance servi
Slide 21: Summary
Summary O Begbies Traynor Group 20
Slide 22: Summary
Summary • Good financial performance in the first half year • More favourable insolvency markets than in recent history • Well placed to deliver on expectations for the full year • Continue to develop, diversify and invest across all our service lines • Strong financial position to make investments
Slide 23: Investment case
Investment case • Listed on AIM since 2004 • A leading business recovery, financial advisory and property services consultancy with over 600 staff and partners operating across the UK • As the UK’s leading independent business recovery practice, we handle the largest number of corporate appointments
Slide 24: Appendix
Appendix O Begbies Traynor Group 23
Slide 25: Market position
Market position Business recovery and financial advisory Property services Number of corporate appointments HY19 • Market place • Eddisons is a top 25 firm by revenue Begbies Traynor 597 • Top 10 firms (including CBRE, JLL, Savills) have revenue of £100m to £990m with a significant FRP 250 national
Slide 26: Ownership structure
Ownership structure The group has 110.5m shares in issue. The ownership profile is: Name % holding Ric Traynor 24.6% Other management 1.5% Major institutions: • Hof Hoorneman Bankiers 10.8% • Fidelity 9.5% • Insinger Gilissen 6.7% • Close Brothers 4.5% • Allianz Global Investors 4.0% • Nordea Asset
Slide 27: Profile of our insolvency caseload
Profile of our insolvency caseload 5,000 £5,706 4,000 Volume 3,000 2,000 £31,464 1,000 £59,963 £240,121 £83,869 - £20k £20 - £50k £50 - £75k £75k - £100k >£100k * As at 31 October 2018 26
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.
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