Btg Consulting Plc · LSE:BTG
Btg Consulting — Begbies Traynor Group — H1 2019/20 Earnings Presentation
28 slides from Btg Consulting's earnings presentation, December 2019
Slide 1: Half year results presentation
Half year results presentation Ric Traynor – Executive Chairman Nick Taylor – Group Finance Director December 2019
Slide 2: About Begbies Traynor Group plc
About Begbies Traynor Group plc 1
Slide 3: Strong first half performance and confidence in full year outlook
Strong first half performance and confidence in full year outlook REVENUE £33.8m (+21%) (2018: £28.0m) • Revenue growth of 21% (10% organic) • Improved operating margin to 13.2% (2018: 12.6%) ADJUSTED PROFIT BEFORE TAX • Completed three acquisitions £4.0m (+33%) (2018: £3.0m) • Raised £7.8m (net) in
Slide 4: Financial review
Financial review O Begbies Traynor Group
Slide 5: Financial highlights
Financial highlights Six months Six months Year ended ended ended £m 31 Oct 19 31 Oct 18 30 Apr 19 Revenue 33.8 28.0 60.1 Operating profit (before amortisation and transaction costs) 4.5 3.5 8.0 Margin 13.2% 12.6% 13.4% Adjusted profit before tax 4.0 3.0 7.0 Adjusted basic EPS 2.6p 2.1p 5.0p Dividen
Slide 6: Segmental analysis
Segmental analysis Six months Six months ended ended £m 31 Oct 19 31 Oct 18 Revenue Business recovery and financial advisory 23.1 20.0 Property advisory and transactional services 10.7 8.0 Total 33.8 28.0 Operating profit Business recovery and financial advisory 4.9 3.7 Margin 21.1% 18.5% Property a
Slide 7: Segmental performance
Segmental performance • Business recovery and advisory • Revenue growth of 15%: • Organic growth of 13% derived from both: • growth initiatives (including recruitment of senior work-winners), strong performance from advisory team • increased market activity levels - 7% increase in number of corporat
Slide 8: Acquisitions
Acquisitions • Business recovery and financial advisory Alexander Lawson Jacobs (ALJ) – 24 October 2019 • Initial consideration of £2.35m (£2.1m cash and £0.25m shares) with contingent consideration of up to £4.0m • Pre acquisition trading: revenue £3.1m and pre-tax profit £0.9m Regeneratus – 23
Slide 9: Financing
Financing • Strong free cash flow of £3.1m (2018: £2.1m) • Placing of 11m shares generating net proceeds of £7.8m • Facilities: • £25m unsecured committed RCF and £5m uncommitted acquisition facility • Facilities committed to 2023 • Strong financial position with leverage improved to 0.2x (Apr 19: 0
Slide 10: IFRS 16 'Leases'
IFRS 16 ‘Leases’ • Adopted on a fully retrospective basis – full restatement of comparatives • Key changes: At lease inception: Right of use asset recognised - present value of future lease payments + initial direct costs + estimate of dilapidation costs under lease Lease liabilities - present
Slide 11: IFRS 16 'Leases' – impact on reported numbers
IFRS 16 ‘Leases’ – impact on reported numbers Immaterial impact on profit before tax Modest reduction in net assets No impact on total cash flow £m 6 months 6 months 12 months 12 months Oct 19 Oct 18 Apr 20 Apr 19 Income statement Operating profit 0.2 0.2 0.4 0.5 Finance costs (0.3) (0.3) (0.5
Slide 12: Full year outlook
Full year outlook • Strong first half performance • H2 will benefit from contribution from recent acquisitions • Anticipate aggregate impact of recent acquisitions and placing shares will be earnings enhancing in the current year and thereafter • Confident of delivering results at least in line with
Slide 13: Group developments
Group developments O Begbies Traynor Group 12
Slide 14: Business recovery and advisory
Business recovery and advisory • Business recovery: • Ongoing organic development: • Recruitment of fee earners with focus on business development and increasing capacity • Four new partners in the year – two external appointments and two internal promotions • Increased market activity levels - 7% i
Slide 15: Property advisory and transactional services
Property advisory and transactional services • Building consultancy continued to develop: • Continuing growth in education and wider public sector • Recruited Cambridge based building consultancy team – joined our BSM team to enhance regional presence • Investment in public sector business developme
Slide 16: Continuing growth expected: supported by recent acquisitions
Continuing growth expected: supported by recent acquisitions Revenue (£m) Adj. PBT (£m) +7% +15% +16% +15% +32% +5% 69.0 73.9 10.9 60.1 +27% 9.4 +14% 49.7 52.4 7.1 4.9 5.6 2017A 2018A 2019A 2020E 2021E 2017A 2018A 2019A 2020E 2021E Adj. diluted EPS (p) Dividend (p) +17% +23% +8% +7% +24% 6.8 +9% +8%
Slide 17: Our activities – counter-cyclical focus maintained
Our activities – counter-cyclical focus maintained • Multiple sources of growth potential • Ability to grow across the economic cycle • Strong financial platform • Strong operating margins • Highly cash generative 16
Slide 18: Summary
Summary O Begbies Traynor Group a7
Slide 19: Summary
Summary • Strong financial performance in the period • Confident of delivering results at least in line with current market expectations • Well placed to continue our track record of revenue and profit growth with: • increased scale of activities; • favourable conditions in UK insolvency market; and
Slide 20: Appendix
Appendix O Begbies Traynor Group 19
Slide 21: Business recovery
Business recovery • UK’s leading independent business recovery • Basis of remuneration practice • Typically on the basis of hours worked with fees paid from asset realisations • Handle the largest number of corporate appointments in the UK • In limited occasions based on a percentage of asset realis
Slide 22: Insolvency market
Insolvency market Competitors Market Number of corporate appointments 12m to Sep 19 Begbies Traynor* 1,423 FRP 571 Leonard Curtis 526 Quantuma 365 TOTAL 14,420 Market share 10% Source: Administrations, CVLs and CVAs as disclosed in the London, Edinburgh and Belfast Gazettes, Accountant in Bankruptcy
Slide 23: Financial advisory
Financial advisory • Services: • Clients: • Corporate finance - Buy and sell side private company • Businesses transactions • Legal and professional community • Forensic accounting and investigations - fraud and financial • Banks and financial institutions crime investigations, expert witness for di
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; public sector bodies, property developers an
Slide 25: Ownership structure
Ownership structure The group has 127.6m shares in issue. The ownership profile is: Name % holding Ric Traynor 21.3% Other management 6.2% Major institutions: • Hof Hoorneman Bankiers 9.1% • Fidelity International 6.9% • OVMK Vermogensbeheer 5.7% • Close Brothers 5.1% • Miton Group Asset Management
Slide 26: H2 financial guidance
H2 financial guidance • Confident of delivering results at least in line with current market expectations for the full year • First time contribution from H1 acquisitions • Adjusted tax rate 22% (FY19: 22%) • Average shares in issue FY20 c123.9m; fully diluted c126.2m • Transaction/amortisation cost
Slide 27: Balance sheet
Balance sheet £m 31 Oct 19 31 Oct 18 30 Apr 19 Intangible assets 61.4 57.8 59.4 Fixed assets 8.8 8.8 9.1 Acquisition items : deemed remuneration 9.5 2.4 5.7 : deemed remuneration liabilities (2.4) (2.2) (3.1) Working capital: - Assets 32.2 27.5 29.8 - Liabilities (20.8) (15.4) (18.8) Net working cap
Slide 28: 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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