Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — FY2024 Earnings Presentation
30 slides from Btg Consulting's earnings presentation, July 2024
Slide 1: Begbies Traynor Group Full Year Results July 2024
Ric Traynor — Executive Chairman Nick Taylor — Group Finance Director July 2024 O Begbies Traynor Group
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: Highlights – a decade of profitable growth
Highlights – a decade of profitable growth REVENUE • Overall revenue growth of 12% (6% organic) £136.7m (+12%) (2023: £121.8m) • Business recovery and advisory 7% revenue growth ADJUSTED PROFIT BEFORE TAX • Led by business recovery up 13% £22.0m (+6%) (2023: £20.7m) • Record year for property divisi
Slide 4: Consistent profitable growth across the cycle
Consistent profitable growth across the cycle.… Revenue Growth and Diversification Profit Growth 136.7 25.0 140 121.8 10 yr Revenue CAGR: +13% 10 yr PBT CAGR: +22% 120 110.0 20.0 100 83.8 Revenue (£m) 15.0 PBT (£m) 80 70.5 60.1 52.4 20.7 22.0 60 50.1 49.7 10.0 45.4 17.8 40 5.0 11.5 9.2 20 5.6 7.0 3.
Slide 5: ….resulting in a leading UK advisory firm
….resulting in a leading UK advisory firm 4
Slide 6: Financial review
Financial review O Begbies Traynor Group
Slide 7: Financial highlights – growth across both divisions
Financial highlights – growth across both divisions £m 2024 2023 Revenue 136.7 121.8 Adjusted EBITDA 28.5 26.6 Operating profit 23.9 21.8 Adjusted profit before tax 22.0 20.7 Adjusted diluted EPS 9.9p 10.1p Dividend per share 4.0p 3.8p Net (debt) cash (1.4) 3.0 • Revenue growth of 12% (6% organic) •
Slide 8: Reconciliation of adjusted to statutory profit
Reconciliation of adjusted to statutory profit • Acquisition consideration £m 2024 2023 • Charged to profit rather than capitalised if contingent Adjusted profit before tax 22.0 20.7 on selling shareholders remaining with the group Acquisition consideration (11.1) (12.3) • Designed to preserve value
Slide 9: Balanced mix of services driving double digit growth
Balanced mix of services driving double digit growth 19 8
Slide 10: Business recovery and advisory – a further successful year
Business recovery and advisory – a further successful year • Revenue growth of 7% (6% organic) • Profit increase of 5% with margins of 26.5% (2023: 27.1%) • Higher levels of insolvency activity driving • Revenue increase of 13% to £79.5m (2023: £70.6m) • Order book increase of 8% to £71.9m (2023: £6
Slide 11: Property advisory – a record year
Property advisory – a record year • Revenue growth of 26% (7% organic) • Profit increase of 38% with margins improved to 18.9% (2023: 17.1%) • Additional consultancy fees of £0.5m benefitting the year with underlying margin of 18% • Consultancy (40%*) 19 • Significant revenue growth of over 20% • Co
Slide 12: Investing in our people, processes, sustainability and marketing
Investing in our people, processes, sustainability and marketing People • Continue to invest in developing our teams • Developing talent and learning opportunities • Enhanced benefits package in the year to give more flexibility and broader range of benefits Processes • Investing in technology to im
Slide 13: Strong financial position with new, enhanced bank facilities
Strong financial position with new, enhanced bank facilities £m 2024 2023 Adjusted EBITDA 28.5 26.6 Working capital (3.5) (2.8) Cash from operating activities 25.0 23.8 Tax (6.7) (5.3) Other payments (interest, capex, lease payments) (5.9) (4.4) Free cash flow 12.4 14.1 Dividends (5.9) (5.4) Acquisi
Slide 14: Guidance - confident of further year of growth
Guidance - confident of further year of growth • Confident of outlook, in line with current market expectations* • Business recovery well-placed to continue track record of growth • Insolvency activity at elevated levels • sustained higher interest rates impacting on corporate stress • anticipated t
Slide 15: Divisional review
Divisional review O Begbies Traynor Group 14
Slide 16: Business recovery and advisory: a further successful year
Business recovery and advisory: a further successful year Business recovery • Continuing revenue growth across all case sizes • Larger more complex appointments represent 50% of revenue • Regional network and digital marketing provide more routine cases • Market-leading positions maintained by volum
Slide 17: Elevated level of insolvencies expected to be maintained
Elevated level of insolvencies expected to be maintained • Administrations (typically larger insolvencies) remain Administration appointments significantly below previous peak (2008) • Liquidation rate at c.0.5% is less than half previous recessionary peak of >1.0% • Normalised interest rates antici
Slide 18: Ten years of accelerating growth in property advisory
Ten years of accelerating growth in property advisory • Division created through acquisition of Eddisons in Dec 2014 • Significantly increased scale from £12m at inception to current run rate of £45m • Grown from a Yorkshire-based multi-disciplinary property consultancy to a well-regarded mid-tier n
Slide 19: A record year for our property team with continuing expansion
A record year for our property team with continuing expansion • Asset sales - further investments to boost team • Auctions now national practice with pro-forma revenue c.£10m • Property, plant and machinery sales • Acquisition of SDL in Dec 2023, follows Mark Jenkinson (prior year) • Now marketing o
Slide 20: Strategy for growth
Strategy for growth O Begbies Traynor Group 19
Slide 21: Proven growth strategy executed successfully since 2014
Proven growth strategy executed successfully since 2014 Organic growth Acquisition strategy • Retention and development of our existing • Value-accretive acquisitions in any of the partners and employees following market segments • Recruitment of new talent • Existing service lines to enhance market
Slide 22: Acquisitions accelerating growth, diversification and resilience
Acquisitions accelerating growth, diversification and resilience • Significant increase in scale of group resulting from growth strategy • Well-established process for identification, valuation, acquisition and integration of target businesses • 13 value enhancing acquisitions delivering revenue and
Slide 23: Summary - confident in our strong platform for future growth
Summary - confident in our strong platform for future growth • Successfully executed growth and diversification strategy since 2014 • Driven material growth over the period • CAGR of 13% revenue and 22% adjusted PBT • Results for the year built on strong track record with growth across both division
Slide 24: Investment case
Investment case • Strong track record of cash generative, profitable growth • Well-established progressive dividend policy • Strongly positioned for further growth • Market leading business recovery practice • Strong growth in non-insolvency activities • High levels of repeat business • Extensive, l
Slide 25: Questions
Questions O Begbies Traynor Group 24
Slide 26: Appendix
Appendix O Begbies Traynor Group 25
Slide 27: FY25 analyst metrics
FY25 analyst metrics • Business recovery and advisory • Organic revenue growth for the division broadly in line with FY24 • Expected recovery of M&A activity c£1.5m revenue impact at c40% margin • Property advisory • Full year impact of FY24 acquisitions: revenue £3.0m and profit £0.2m (net of non-r
Slide 28: Acquisition accounting and payments
Acquisition accounting and payments £m FY25 FY26 FY27 FY28 TOTAL P&L items Amortisation 3.3 2.7 1.3 0.8 8.1 Acquisition consideration 8.9 7.6 3.9 1.3 21.7 Contingent consideration outflows Cash payments 8.0 5.7 4.9 0.6 19.2 Share issues 1.3 1.4 0.7 - 3.4 Total consideration 9.3 7.1 5.6 0.6 22.6 Net
Slide 29: Ownership structure
Ownership structure The group has 159.3m shares in issue. The ownership profile is: Name % holding Ric Traynor 17.1 Other directors 2.6 Major institutions: • Close Brothers 7.3 • Amati Global Investors 5.6 • OVMK Vermogensbeheer 4.6 • Gresham House Asset Management 3.9 • River Global Investors 3.8 •
Slide 30: 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.