Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — H1 2025 Earnings Presentation
27 slides from Btg Consulting's earnings presentation, December 2024
Slide 1: Half year results presentation
Half year results presentation Presented by: Ric Traynor – Executive Chairman Nick Taylor – Group Finance Director December 2024
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 UK multi-disciplinary advisory firm
A leading UK multi-disciplinary advisory firm Providing advice and solutions to our clients to enhance, protect and realise the value of their businesses, assets and investments across the following areas of expertise 2
Slide 4: Strong financial performance with high double-digit growth
Strong financial performance with high double-digit growth Revenue Adjusted diluted EPS £76.3m (+16%) 5.1p (+11%) (2023: £65.9m) (2023: 4.6p) Adjusted EBITDA Interim dividend £15.3m (+20%) 1.4p (+8%) (2023: £12.8m) (2023: 1.3p) Adjusted profit before tax Net debt £11.5m (+16%) £3.8m (2023: £ 9.9m) (
Slide 5: Strong activity levels and positive momentum across the business
Strong activity levels and positive momentum across the business Supportive markets for Double digit organic growth Continuing growth and growth from both divisions development of our team • Insolvencies remain at • Increased insolvency activity • 7% growth in fee earners over elevated levels last 1
Slide 6: Financial review
Financial review a 5 G Begbies Traynor Group
Slide 7: High double-digit revenue and profit growth
High double-digit revenue and profit growth £m 2024 2023 Growth Business recovery and advisory Business recovery and advisory 52.8 47.0 12% • Insolvency revenue increased by 7% (organic) to £41.4m (2023: £38.8m) Property advisory 23.5 18.9 24% • Driven by higher value cases • Pipeline increased to £
Slide 8: Reconciliation of adjusted EBITDA to statutory profit
Reconciliation of adjusted EBITDA to statutory profit £m 2024 2023 Acquisition consideration Adjusted EBITDA 15.3 12.8 • Charged to profit rather than capitalised if contingent on selling shareholders remaining with the group Share based payment charge (0.5) (0.2) • Designed to preserve value of goo
Slide 9: Strong financial position with significant headroom
Strong financial position with significant headroom £m 2024 2023 Cashflow – typical H1 seasonality Adjusted EBITDA 15.3 12.8 • Working capital absorption increased to £5.7m (2023: £4.6m) from: • Organic revenue growth - £4.6m Working capital (5.7) (4.6) • Annual profile of payments (bonuses and prep
Slide 10: Guidance – confident of further year of growth in line with expectations
Guidance – confident of further year of growth in line with expectations Market conditions remain supportive for group’s service lines • Reflected in good activity levels and positive momentum across the business Business recovery: anticipate continuing growth supported by market conditions • Capaci
Slide 11: Operating review
Operating review a 5 G Begbies Traynor Group
Slide 12: Insolvencies remain at elevated levels
Insolvencies remain at elevated levels Activity levels expected to be sustained by current headwinds: Corporate insolvencies • Continuing demand pressures • Rise in costs pre and post budget • Prospect of higher for longer interest rates Administrations remain significantly below previous peak (2008
Slide 13: Supportive market transaction levels for property advisory
Supportive market transaction levels for property advisory 150 Commercial property transactions Commercial property transaction levels in line with prior year 120 Number (‘000) • Remains c.6% below pre-pandemic levels 90 60 Property auction volumes continue to grow 30 • Maintains post pandemic momen
Slide 14: Double digit growth from both divisions
Double digit growth from both divisions Now one of the largest national property auctioneers (residential and commercial online auctions) • Area of recent investment through acquisition: • Mark Jenkinson (Sheffield) - March 2023 • SDL Auctions (Midlands) - December 2023 • Good progress in integratio
Slide 15: Notable cases across the business
Notable cases across the business Caskade (KFC and Taco Bell franchise) Other typical cases across our service lines Pre-pack administration sale of FCA-regulated independent financial Background: advisor with over 1,000 clients and substantial AUM. BTG Advisory was approached to explore strategic o
Slide 16: Our team – continuing to drive organic growth
Our team – continuing to drive organic growth 7% growth in fee earners over last 12 months • Advisory senior hires (appointed four partners and one director) with further appointments planned for H2 • Building consultancy and valuations hires in the period Good progress on learning and development s
Slide 17: Strategy for growth
Strategy for growth a 5 G Begbies Traynor Group
Slide 18: Making good progress on medium-term revenue target of £200m
Making good progress on medium-term revenue target of £200m 17
Slide 19: Well placed to build on ten years of growth in property advisory
Well placed to build on ten years of growth in property advisory Growth continues to be focused on core areas of valuations, asset sales and consultancy Division created through Eddisons acquisition in December 2014 • 14 further bolt on acquisitions to grow the division • 8 specialist and 6 general
Slide 20: Since 2014 have tripled the size of the business with a six-fold increase in PBT
Since 2014 have tripled the size of the business with a six-fold increase in PBT Revenue growth and diversification Profit growth 140 136.7 25 121.8 120 110.0 20 100 10 yr Revenue CAGR: +13% Revenue (£m) 83.8 PBT (£m) 80 70.5 15 60.0 10 yr PBT CAGR: +22% 60 50.1 49.8 52.6 22.0 45.4 10 20.7 17.8 40 5
Slide 21: Summary and outlook
Summary and outlook a 5 G Begbies Traynor Group
Slide 22: Strong first half performance and confident of delivering expectations for the full year
Strong first half performance and confident of delivering expectations for the full year Continued to execute strategy to grow the business in the period Proven strategy for growth across the cycle • Making good progress towards medium-term revenue target of £200m pa • Driven by combination of organ
Slide 23: Investment case
Investment case 1 Long track-record of revenue and earnings growth Diversified income streams providing balance and growth across the economic cycle 3 Proven ability to execute earning accretive acquisitions High levels of repeat business from long-established client base 5 Progressive dividend poli
Slide 24: Appendix
Appendix a 5 G Begbies Traynor Group
Slide 25: H2 analyst metrics
H2 analyst metrics • Profit expectations for the full year unchanged • H2 guidance • Revenue phasing: typical H2 weighting of revenue in business recovery and advisory • Margins broadly in line with H1 • Adjusted tax rate 26% (FY26: 26%) • Share based payment charge £0.7m • Weighted average shares f
Slide 26: Acquisition accounting and payments
Acquisition accounting and payments £m H125 H225 FY26 FY27 FY28 FY29+ TOTAL P&L items Amortisation 1.9 1.6 2.8 1.4 0.8 0.7 7.3 Acquisition consideration 4.9 3.4 8.0 3.9 1.3 16.6 Contingent consideration outflows Cash payments 4.1 4.7 5.3 4.8 0.4 15.2 Share issues - 1.6 1.1 0.5 - 3.2 Total considerat
Slide 27: 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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