Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — H1 2021/22 Earnings Presentation
16 slides from Btg Consulting's earnings presentation, December 2021
Slide 1: Half year results presentation
Half year results presentation Ric Traynor – Executive Chairman Nick Taylor – Group Finance Director December 2021
Slide 2: A leading professional services consultancy
A leading professional services consultancy 1
Slide 3: Strong first half performance and confidence in full year outlook
Strong first half performance and confidence in full year outlook REVENUE £52.3m (+39%) (2020: £37.5m) • Significant growth in revenue and profits • First time contribution from recent acquisitions OPERATING MARGIN • Market share gains in insolvency 16.0% (2020: 14.4%) • Property services recovery f
Slide 4: Financial highlights
Financial highlights £m 2021 2020 Revenue 52.3 37.5 Operating profit (before amortisation and transaction costs) 8.4 5.4 Margin 16.0% 14.4% Adjusted profit before tax 8.0 5.0 Adjusted basic EPS 4.1p 3.1p Interim dividend 1.1p 1.0p Net cash 1.2 0.7 • Revenue increase of 39% in the period (36% acquire
Slide 5: Significant growth from both divisions
Significant growth from both divisions Revenue (£m) Profit (£m) 2021 2020 growth 2021 2020 growth Business recovery and financial advisory 38.7 26.1 48% 9.7 6.6 47% Property advisory and transactional services 13.6 11.4 19% 2.4 1.6 50% Shared and central costs - - - (3.6) (2.7) 33% Total 52.3 37.5 3
Slide 6: Recent acquisitions performing well
Recent acquisitions performing well CVR (Jan 21) and DRP (Mar 21) acquisitions • Significantly increased scale of insolvency business • Notably in key London marketplace • Integration completed on target • Local teams merged in common locations • Both businesses performed well and in line with expec
Slide 7: Strong financial position maintained
Strong financial position maintained £m Oct 20 free cash flow 6.0 Prior period VAT payments deferred to H2 (2.7) Increased pre-tax profits 3.0 Tax payments (0.6) Working capital – largely timing of payments in H1 (2.5) Oct 21 free cash flow 3.2 Dividends (1.5) Acquisition payments (2.2) Deferred con
Slide 8: Insolvency market
Insolvency market • Market impacted by Government support measures since start of pandemic • Majority of these measures now removed • Final measures to end in March 2022 • Volumes* increased over last 6 months • 3,765 in Q3 calendar 2021 from low of 2,374 in Q1 calendar 2021 • Increases to date larg
Slide 9: Recovery and advisory developments
Recovery and advisory developments • Insolvency market share increased from 10% to 14% • Growth in both liquidations and administrations • Benefit of organic growth and acquisitions • Mix of income in the period shifted towards smaller appointments • Lower margin per case but greater volume and less
Slide 10: 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 12% Property •
Slide 11: Well established and successful growth strategy
Well established and successful growth strategy Strategy has delivered CAGR of 20% in EPS over the last five years 10
Slide 12: 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 • Analyst forecast significant growth for FY22 * CAGR from FY17-FY21 • range
Slide 13: Confidence in full year outlook
Confidence in full year outlook • Strong financial performance in the period • Confident of delivering market expectations for the full year • Will represent a year of significant growth • Expect results to have a second half weighting • Anticipate increase in insolvency activity in H2 • Range of co
Slide 14: Appendix
Appendix O Begbies Traynor Group 13
Slide 15: H2 financial guidance
H2 financial guidance • Confident of delivering market expectations for the full year • H2 weighting overall from anticipated increase in insolvency volumes • Property services H1 weighted reflecting timing of project income from school development work • Adjusted tax rate 21% (FY21: 20%) • Average
Slide 16: 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.
Begbies Traynor Group — H1 2021/22 Earnings Presentation on 6ix