Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — H1 2018 Earnings Presentation
26 slides from Btg Consulting's earnings presentation, December 2017
Slide 1: Half year results presentation
Half year results presentation Ric Traynor – Executive Chairman Nick Taylor – Group Finance Director December 2017
Slide 2: Our services
Our services oO Begbies Traynor Begbies Traynor is the UK's leading independent business recovery practice, handling the largest number of corporate agpointments, principally serving the mid-market and smaller companies. (G3 Insolvency - Corporate and Personal Oo BTG Advisory BTG Advisory is a bouti
Slide 3: Financial highlights
Financial highlights Revenue Adjusted Adjusted Interim PBT EPS dividend £26.0m £2.9m 2.0p 0.7p (2016: £24.5m) (2016: £2.5m) (2016: 1.8p) (2016: 0.6p) Business Property Operating Net debt recovery services cash flow £6.9m profit profit £4.9m £4.1m £1.3m (2016: £3.2m) (2016: £2.0m) (2016: £2.2m) (2016
Slide 4: Overview
Overview • A good first half performance, results in line with expectations • Business recovery and financial advisory services: • increase in insolvency market activity levels over the last twelve months • improved performance with revenue growth and improved margins • Property services: • performe
Slide 5: Financial review
Financial review O Begbies Traynor Group
Slide 6: Income statement
Income statement Six months Six months Year ended ended ended £m 31 Oct 17 31 Oct 16 30 April 17 Revenue 26.0 24.5 49.7 Operating profit (before amortisation and transaction costs) 3.1 3.0 5.6 Interest costs (0.2) (0.5) (0.7) Adjusted profit before tax 2.9 2.5 4.9 Refinancing costs - - (0.2) Transac
Slide 7: Segmental performance
Segmental performance Business recovery and advisory Six months Six months £m ended ended Year ended Revenue increase due to: 31 Oct 17 31 Oct 16 30 Apr 17 increased activity levels in calendar 2017 Business recovery and success fee on contingent case of £0.8m financial advisory Revenue 19.2 1
Slide 8: Balance sheet
Balance sheet • Non current assets: reduction due to amortisation £m 31 Oct 17 30-Apr-17 31-Oct-16 Non current assets 58.9 60.0 61.3 • Current assets reduced to £28.8m (Apr 17: £29.8m) • Receivables and unbilled income £25.1m (Apr 17: £26.2m) Current assets 28.8 29.8 33.6 • Other debtors and prepaym
Slide 9: Cash flow
Cash flow Six months Six months • Operating: ended ended Year ended • Strong operating cash generation in the period £000 31 Oct 17 31 Oct 16 30 April 17 Cash from operations 4.9 2.2 8.0 • Tax payments of £0.4m (2016: £0.7m) • Interest payments of £0.2m (2016: £0.4m) Tax (0.4) (0.7) (1.5) • Investin
Slide 10: Strong financial position
Strong financial position • Bank facility provided by HSBC on unsecured basis • £25m committed revolving credit facilities; and • £5m uncommitted acquisition facility • August 2021 maturity • Significant headroom in committed banking facilities • Strong position with gearing reduced to 12% (Oct 16:
Slide 11: Full year guidance
Full year guidance • H2 trading: • Business recovery and advisory: • second half expected to perform broadly in line with comparative period • Property: • expected to continue at least at current trading levels • Costs broadly in line with H1 • Well placed to deliver upon current market expectations
Slide 12: Business review
Business review O Begbies Traynor Group a
Slide 13: Business recovery and financial advisory
Business recovery and financial advisory • Insolvency market: • Increase in activity levels in calendar year 2017 • Twelve months ended Sep 17: 15,572 (Sep 16: 14,482), an increase of 8% • Appointments in calendar years 2015 and 2016 were c14,700 pa • Maintained market share and remain leading appoi
Slide 14: Property services
Property services • Invested in the team, having recruited a new team into Liverpool: • Providing valuation and agency services • Operating from group’s existing office • Investment in education sector expertise with increased growth opportunities in future years • Good cross-referral of work from B
Slide 15: Multiple growth opportunities
Multiple growth opportunities • Business recovery • Strong and mature market position • High margins and good operating cash flows • Well placed in event of cyclical market growth • Operational gearing would deliver enhanced margins • Growth opportunities from senior recruitment and selective acquis
Slide 16: Outlook
Outlook O Begbies Traynor Group 15
Slide 17: Outlook
Outlook • Good first half performance • Well placed to deliver current market expectations for the full year • Group in its strongest position for many years • Continue to invest in growth of the business • Q3 trading update in March 2018 16
Slide 18: Investment summary
Investment summary • A leading UK professional services consultancy with two complementary and profitable divisions: • Business recovery and financial advisory - UK’s leading independent business recovery practice • Property services - national chartered surveyors delivering specialist property serv
Slide 19: Appendix
Appendix O Begbies Traynor Group 18
Slide 20: Strategy
Strategy To be recognised as a leading professional services consultancy, delivering business recovery, financial advisory and property advisory services. We deliver this through our expertise in: • Business restructuring and insolvency; • Transactional support; • Valuations and advisory services; a
Slide 21: Our expertise
Our expertise Business restructuring and insolvency •Corporate recovery % of revenue •Personal insolvency •Restructuring •Property receiverships •Specialist insurance broking Business Valuation and advisory services restructuring and insolvency •Due diligence •Debt advisory 7% Valuation and •Forensi
Slide 22: Market position
Market position Business recovery and financial advisory Property services Number of corporate appointments HY18 • Market place • Eddisons is a top 25 firm by revenue Begbies Traynor 453 • Top 10 firms (including CBRE, JLL, Savills) have revenue of £100m to £990m with a significant Leonard Curtis 19
Slide 23: Ownership structure
Ownership structure The group has 107.3m shares in issue. The ownership profile is: Name % holding Ric Traynor 25.3% Other management 2.3% Major institutions: • Hof Hoorneman Bankiers 11.1% • Fidelity 9.9% • Theodoor Gilissen 6.5% • Close Brothers 5.1% • Allianz Global Investors 4.8% 22
Slide 24: Profile of our insolvency caseload
Profile of our insolvency caseload 5,000 £5,791 4,000 Volume 3,000 2,000 £30,961 1,000 £59,029 £86,649 £264,195 - £20k £20 - £50k £50 - £75k £75k - £100k >£100k * As at 31 October 2017 23
Slide 25: Solid track record
Solid track record Revenue £49.7m 45.5 50.1 49.7 46 124 Faas i 37.7 Bh 362 2015-2016 =—.2017 BE Property Bl Business recovery Adjusted profit Adjusted EPS Dividend Net debt before tax £4.9m 3.3p 2.2p £10.3m 2015 20162017 20152016 = 2017 2015 -2016~=—2017 O15 2016 = 2017 O Begbies Traynor Group 24
Slide 26: 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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