Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — FY2021 Earnings Presentation
29 slides from Btg Consulting's earnings presentation, July 2021
Slide 1: Full year results presentation
Full year results presentation Ric Traynor – Executive Chairman Nick Taylor – Group Finance Director July 2021
Slide 2: Highlights - strong performance ahead of original expectations
Highlights - strong performance ahead of original expectations REVENUE • A year of real progress for the group £83.8m (+19%) (2020: £70.5m) • Results ahead of original expectations ADJUSTED PROFIT BEFORE TAX • Strong financial performance £11.5m (+25%) (2020: £9.2m) • Another year of growth in reven
Slide 3: Strong financial track record
Strong financial track record 19 • Adjusted PBT and EPS more than doubled • Annualised growth* rates of: • 14% revenue (7% organic) • 20% adjusted EPS (10% organic) • 8% dividend • 13 value enhancing acquisitions completed * CAGR from FY17-FY21 2
Slide 4: Operating and finance review
Operating and finance review 3
Slide 5: Financial highlights
Financial highlights £m 2021 2020 Revenue 83.8 70.5 Operating profit (before amortisation and transaction costs) 12.4 10.1 Margin 14.8% 14.3% Adjusted profit before tax 11.5 9.2 Adjusted basic EPS 6.9p 5.7p Dividend per share 3.0p 2.8p Net cash (debt) 3.0 (2.8) • Revenue growth of 19% (13% acquired,
Slide 6: Business recovery and financial advisory
Business recovery and financial advisory • Revenue growth of 20% (14% acquired, 6% organic) • Contribution from current and prior year acquisitions • Strong performance from advisory team • Robust performance from business recovery, despite the suppressed market • Margins increased to 24.6% (2020: 2
Slide 7: Property advisory and transactional services
Property advisory and transactional services • Revenue growth of 15% (9% acquired, 6% organic) • Current and prior year acquisitions; • Organic development; offset by • Impact of lockdown in Q1 of financial year • Margins of 16.2% (2020: 18.7%) impacted by lockdown 19 • Revenue reduced by c£1.7m and
Slide 8: Acquisitions
Acquisitions CVR Global – January 2021 DRP – March 2021 • Insolvency and advisory – London, South of England and offshore • Insolvency – significant increase in key London market • Revenue £9.5m and adjusted PBT £1.2m • Built on CVR acquisition • Synergies at least £0.75m when fully realised • Reven
Slide 9: Strong financial position with significant liquidity
Strong financial position with significant liquidity £m 2021 2020 Free cash flow 12.3 7.7 Net proceeds from share issues 20.9 7.8 Acquisition and deferred consideration payments (23.9) (9.1) Dividends (3.6) (3.2) Increase in net cash 5.7 3.2 • Increased free cash flow from operating profit and favou
Slide 10: Outlook - start new financial year in strong position
Outlook - start new financial year in strong position • Well-positioned to deliver anticipated material growth in earnings • Full year impact of FY21 acquisitions • MAF acquisition completed in new financial year • Organic growth from insolvency market recovery anticipated from H2 • Normal trading a
Slide 11: Operating and strategic review
Operating and strategic review 10
Slide 12: Insolvency market
Insolvency market • Key factors in current market • Continuing significant Government support for corporates • Lack of creditor pressure – HMRC, banks, landlords • Court backlogs due to lockdown • Reduction in national appointments to 11,081* (2020: 16,840) 19 • Legislation changes • Temporary prohi
Slide 13: Recovery and advisory: robust performance in a challenging environment
Recovery and advisory: robust performance in a challenging environment • Increase in organic fee income from larger cases offsetting volume reductions in insolvency • High profile appointments include: • Wigan Athletic Football Club; • Football Index, the on-line football gaming site; and • Retailer
Slide 14: Recovery and advisory: significant increase in scale and capabilities
Recovery and advisory: significant increase in scale and capabilities • Transformative acquisitions completed • Divisional revenue increased by c.40% on a pro-forma* basis • Material increase in scale in key London market • Annual fee income from London offices increased to c.£28m from £13m** • Enla
Slide 15: Property – broad portfolio provides growth opportunities
Property – broad portfolio provides growth opportunities • Significant insolvency capability will benefit from market recovery CLIENT BASE AS % OF INCOME • Plant and machinery valuation and disposal Receivers and • Property – receivership, auctions and agency insolvency practitioners • Specialist in
Slide 16: Strategy – balance of organic and acquisition
Strategy – balance of organic and acquisition To enhance shareholder value through the delivery of strong, sustainable financial performance Organic growth Acquisition strategy • Retention and development of our existing partners and • Value-accretive acquisitions in any of the following market empl
Slide 17: Summary - strong position and confident in our outlook
Summary - strong position and confident in our outlook • Significant increase in scale of group and capabilities • Recovery and advisory business well-placed to continue recent track record of growth • Uncertainty around timing of removal of government support measures • Expect increase in UK insolv
Slide 18: Questions
Questions O Begbies Traynor Group a7
Slide 19: Appendix
Appendix O Begbies Traynor Group 18
Slide 20: A leading professional services consultancy
A leading professional services consultancy 19
Slide 21: Well placed with counter-cyclical focus
Well placed with counter-cyclical focus 19 20
Slide 22: Business recovery
Business recovery • UK’s leading independent business recovery • Basis of remuneration practice • Typically on the basis of hours worked with fees paid from asset realisations • Handle the largest number of corporate appointments in the UK • In limited occasions based on a percentage of asset • c. 2
Slide 23: Marketplace
Marketplace Firms Largest appointment takers 2020 EY, PWC, Teneo (ex-Deloitte), Interpath (ex-KPMG) Begbies Traynor* 1,521 American boutiques Alvarez & Marsal, FTI, Alix Partners, Kroll (Duff & Phelps) FRP 578 National accountancy firms Quantuma 459 Grant Thornton, BDO, RSM National specialists Leon
Slide 24: Financial advisory
Financial advisory • Services: • Clients: • Advisory - Debt advisory, due diligence and transaction • Businesses support, accelerated corporate finance, pensions advisory, • Legal and professional community business and financial restructuring • Banks and financial institutions • Corporate finance -
Slide 25: Property services
Property services • Services • Clients • Valuations • banks and financial institutions, insolvency practitioners, • valuation of property, small to medium sized businesses, commercial property owners and occupiers, property agents, machinery and business assets public sector bodies, property develop
Slide 26: ESG Overview
ESG Overview Environment Social Corporate Governance • Formed a Sustainability Group - to develop and • Employee engagement – national survey • Compliant with the QCA Corporate Governance manage action plan to set realistic and achievable completed by 64% of eligible employees (comparator Code for s
Slide 27: Ownership structure
Ownership structure The group has 150.9m shares in issue. The ownership profile is: Name % holding Ric Traynor 18.0 Other management 5.7 Major institutions: • Amati Global Investors 7.3 • Close Brothers 6.8 • Stichting Value Partners 5.1 • OVMK Vermogensbeheer 4.4 • Gresham House Asset Management 3.
Slide 28: FY22 analysts metrics
FY22 analysts metrics • Adjusted tax rate 21% (FY21: 20%) • Deferred tax charge of £1.8m re change in rate from 19% to 25% • Weighted average shares for FY22 EPS calculation: basic c155m; diluted c161m • Transaction/amortisation costs: • Deemed remuneration £7.5m (FY21: £6.3m) • Amortisation £4.9m (
Slide 29: 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.