Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — H1 FY2024 Earnings Presentation
22 slides from Btg Consulting's earnings presentation, December 2023
Slide 1: Half year results presentation
Half year results presentation Ric Traynor – Executive Chairman Nick Taylor – Group Finance Director December 2023
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 professional services consultancy with a differentiated service offering
A leading professional services consultancy with a differentiated service offering 19 19 80% of revenue from insolvency and defensive activities from a common network of clients and professionals 2
Slide 4: Highlights - strong first half performance and confidence in full year outlook
Highlights - strong first half performance and confidence in full year outlook REVENUE • Double digit revenue and profit growth £65.9m (+13%) (2022: £58.5m) • Building on consistent track record of growth ADJUSTED PROFIT BEFORE TAX • Insolvency and financial advisory performed well overall £9.9m (+1
Slide 5: Finance review
Finance review O Begbies Traynor Group
Slide 6: Financial highlights – double digit revenue and profit growth
Financial highlights – double digit revenue and profit growth 6 months to 6 months to 12 months to £m Oct 2023 Oct 2022 Apr 2023 Revenue 65.9 58.5 121.8 Adjusted EBITDA 12.8 11.9 26.6 Operating profit (before amortisation and transaction costs) 10.7 9.5 21.8 Operating margin 16.2% 16.2% 17.9% Adjust
Slide 7: Acquisition-related adjusting items
Acquisition-related adjusting items • Transaction costs 6 months to 6 months to £m Oct 2023 Oct 2022 • Acquisition consideration (both initial and earn outs) with ‘lock-in’ obligations from vendors Adjusted profit before tax 9.9 9.0 (deemed remuneration under IFRS 3) • consideration charged to profi
Slide 8: Balanced mix of services driving double digit growth
Balanced mix of services driving double digit growth 19 7
Slide 9: Revenue and profit growth from both divisions
Revenue and profit growth from both divisions 2023 2022 growth Revenue Insolvency and advisory 47.0 42.4 11% Property advisory and transactional services 18.9 16.1 17% Total 65.9 58.5 13% Operating profit Insolvency and advisory 11.4 10.7 7% Margin 24.2% 25.2% Property advisory and transactional ser
Slide 10: Continuing strong cash generation funding investment and dividends
Continuing strong cash generation funding investment and dividends 6 months to 6 months to 12 months to £m Oct 2023 Oct 2022 Apr 2023 Adjusted EBITDA 12.8 11.9 26.6 Working capital (4.6) (4.8) (2.8) Cash from operating activities 8.2 7.1 23.8 Tax, interest, capex, lease payments (4.2) (5.3) (9.7) Fr
Slide 11: Full year outlook – confident of delivering market expectations
Full year outlook – confident of delivering market expectations* • Insolvency • Anticipate activity levels will continue to increase • Corporate financial stress from higher interest rates and inflation • Expect growth through second half year and thereafter • Financial advisory • Anticipate broadly
Slide 12: Strategic and operating review
Strategic and operating review 11
Slide 13: UK insolvency growth continues
UK insolvency growth continues Begbies insolvency revenue vs UK corporate insolvencies • Insolvencies now higher than pre-pandemic • Largely from liquidations • Administrations approaching pre-pandemic level • Insolvency revenue has doubled to £71m since 2019 • Compared to market volumes up 37% • Hi
Slide 14: Continuing to develop and invest in property services
Continuing to develop and invest in property services • Strategy to enhance and broaden service offerings and geographical coverage • Increased scale of division to a current annualised revenue run rate of c£40m • Delivering earnings enhancement from both organic growth and acquisitions • Organic gr
Slide 15: Investing in our people and processes to support growth
Investing in our people and processes to support growth People • Continue to invest in developing talent and learning opportunities • Increase in apprenticeship opportunities • Developed in-house learning pathway for early career professionals • Set up graduate development support for chartered surv
Slide 16: Summary
Summary O Begbies Traynor Group 15
Slide 17: Strong financial track-record delivering shareholder value
Strong financial track-record delivering shareholder value Revenue (£m) Adj. EBITDA (£m) Adj. EBITDA margin 19% CAGR 25% CAGR 121.8 26.6 21.8% 23.9 21.7% 110.0 20.3% 83.8 17.0 70.5 18.9% 60.1 13.3 18.3% 11.0 19 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Adj. PBT (£m)
Slide 18: Summary – confidence in full year outlook
Summary – confidence in full year outlook • Strong first half performance delivering double digit growth • Continued to execute our proven growth strategy • Since 2019 we have doubled revenue and tripled profit • Growth from both divisions in the half year, both organically and through acquisitions
Slide 19: Questions
Questions O Begbies Traynor Group 18
Slide 20: Appendix
Appendix O Begbies Traynor Group 19
Slide 21: H2 analysts metrics
H2 analysts metrics • Profit expectations for the full year unchanged • H2 guidance • Anticipate H2 increase in insolvency • Property – phasing of project work H1 weighted (£0.5m) • H2 acquisition – revenue £0.9m costs £0.8m • Central costs and finance costs maintained at H1 run rate • Adjusted tax
Slide 22: 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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