Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — FY2022 Earnings Presentation
25 slides from Btg Consulting's earnings presentation, July 2022
Slide 1: Investor presentation
Investor presentation Ric Traynor – Executive Chairman Nick Taylor – Group Finance Director July 2022
Slide 2: A leading professional services consultancy
A leading professional services consultancy 1
Slide 3: Well placed with counter-cyclical focus
Well placed with counter-cyclical focus 19 2
Slide 4: Full year results
Full year results O Begbies Traynor Group
Slide 5: Highlights - strong performance ahead of original expectations
Highlights - strong performance ahead of original expectations REVENUE • A further successful and record year for the group £110.0m (+31%) (2021: £83.8m) • Financial performance comfortably ahead of original ADJUSTED PROFIT BEFORE TAX expectations £17.8m (+55%) (2021: £11.5m) • Results for the year
Slide 6: Growth across both operating divisions
Growth across both operating divisions BUSINESS RECOVERY AND FINANCIAL ADVISORY • Revenue growth of 36% (5% organic) • Margins increased to 25.8% (2021: 24.6%) • Profit increase of 43% • Significant increase in scale of activities following insolvency acquisitions late in FY21 and finance broking at
Slide 7: Strong financial position with significant liquidity
Strong financial position with significant liquidity £m 2022 2021 Free cash flow 14.0 12.3 Net proceeds from share issues 0.5 20.9 Acquisition and deferred consideration payments (8.2) (23.9) Dividends (4.6) (3.6) Increase in net cash 1.7 5.7 Net cash 4.7 3.0 • Group remains strongly cash generative
Slide 8: Material increase in scale and service offerings from acquisitions
Material increase in scale and service offerings from acquisitions Business recovery • 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 Fina
Slide 9: Outlook - start new financial year in strong position
Outlook - start new financial year in strong position • Confident of delivering plans for further growth towards the top end of original market expectations • Anticipate cost inflation more than offset by revenue growth • Business recovery well-placed to continue track record of growth • Order book
Slide 10: Operating and strategic review
Operating and strategic review 9
Slide 11: Insolvency market
Insolvency market • Final Government support measures removed in March 2022 • Volumes* increased significantly over last year • 16,648 to 31 March 2022 (2021: 11,134, 2020: 16,840) • Increases to date largely from smaller companies • Liquidation volumes moving ahead of pre-pandemic levels • Administ
Slide 12: Insolvency marketplace
Insolvency marketplace Firms Largest appointment Number of corporate takers appointments in EY, PWC, Teneo (ex-Deloitte), Interpath (ex-KPMG) 2021 American boutiques Alvarez & Marsal, FTI, Alix Partners, Kroll (Duff & Phelps) Begbies Traynor 2,104 National accountancy firms Other national specialist
Slide 13: Business recovery: significant increase in scale of division
Business recovery: significant increase in scale of division • Activity balanced across SME and mid-market • Increased fees across all case sizes: • Smaller more routine cases from regional network and digital marketing expertise • Larger more complex appointments following integration of acquisitio
Slide 14: Property services: multiple opportunities for further growth
Property services: multiple opportunities for further growth • Substantial increase in scale since inception of division in 2014 • Annualised revenue now in excess of £30m from £13m in December 2014 • Strong and growing profitability • Durable income streams from a diversified client base CLIENT BAS
Slide 15: Strategy
Strategy O Begbies Traynor Group 14
Slide 16: Strategy – delivering value through growth
Strategy – delivering value through growth To enhance shareholder value through the delivery of strong, sustainable financial performance Organic growth Acquisition strategy • Retention and development of our existing • Value-accretive acquisitions in any of the partners and employees following mark
Slide 17: Acquiring for growth – 20% revenue CAGR
Acquiring for growth – 20% revenue CAGR • Significant increase in scale of group resulting from growth strategy • Acquisitions key driver of growth • 13 value enhancing acquisitions • Well-defined process for identification, valuation, acquisition and integration of target businesses • Healthy balan
Slide 18: Strong financial track record from growth strategy
Strong financial track record from growth strategy 19 17
Slide 19: Summary - strong position and confident of delivering further growth
Summary - strong position and confident of delivering further growth • Material increase in scale of group and service offerings • Result of organic and acquisitive growth strategy • Well placed with counter cyclical focus • Strong financial track record • Confident of delivering plans for further g
Slide 20: Questions
Questions O Begbies Traynor Group 19
Slide 21: Appendix
Appendix O Begbies Traynor Group 20
Slide 22: Business recovery
Business recovery • UK’s leading independent business recovery • Increase in market share (by volume) practice • Handle the largest number of corporate appointments in the UK • c. 2,000 new appointments per year • Focus on the mid-market and smaller companies • SME market provides base level of inso
Slide 23: 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 24: 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 25: 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.