Interim Results

Begbies Traynor Group PLC 16 January 2007 RNS Release 16 January 2006 Begbies Traynor Group plc Interim results for the period ended 31 October 2006 Begbies Traynor Group plc announces interim results for the period ended 31 October 2006. Period Highlights: •Activity increased to £22m, up 58% on 2005 period •Adjusted eps of 3.6p, c/f 2.6p in 2005 period •Operating cash flow at 94% of PBTA •Acquired businesses performing well and fully integrated •Interim dividend of 1 penny per share declared •International network established and delivering benefits Ric Traynor, Executive Chairman, said: 'We shall pursue a combination of organic and acquisitive growth in our current professional service offerings and in extended compatible new areas of professional activity with a view to delivering group activity in excess of £100m by 2010, whilst retaining operating margins at 20% or better. A number of such new areas have been identified and researched and the board is actively targeting opportunities within them.' Enquiries, please contact: Ric Traynor Neil Boom/Laura Black Executive Chairman Gresham PR Ltd. Begbies Traynor Group plc 020 7404 9000 0161 839 0900 Chairman's Statement The first half of the current financial year of the group has delivered a very satisfactory overall performance in line with the board's expectations and underpinning current market forecasts for the full year to 30 April 2007. We remain fully on track to deliver our original growth plan to achieve annualised turnover of at least £50m at an average margin of 20% or more by the last quarter of calendar 2007. The results include the activities of our two newly acquired business insolvency offices, which have added £2m of turnover in the period between them, bringing overall group turnover to almost £22m for the six months, despite the traditional summer holiday seasonal effects. We have continued to grow our non-insolvency services in corporate finance and investigations, with new teams recruited in both disciplines. These services have contributed a turnover of some £2.8m (12.6% of group turnover) in the period. Activity in our core business insolvency services - held up well, despite the generally predicted upturn in business insolvency volumes remaining unfulfilled. There has been some increase in the final quarter of calendar 2006 and market indicators continue to suggest that there will be a further upturn in 2007, but this may not be significant until towards the end of the year or possibly in early 2008. Consumer debt services, which have been expanded into debt management and refinancing services, continue to grow, particularly in Scotland, and now account for 10% of group activity. The operation of the market for Individual Voluntary Arrangements in England and Wales is currently under review and we have decided not to expand our position in that market aggressively until there is clarity over maintainable profitability. Margins at both gross and net operating levels have held up to expectations, notwithstanding ongoing expenditure in new operations and the formation of our international network (BGN), to give an operating profit before amortisation of goodwill of £4.4m (20.3%) for the period. After interest and corporation tax provisions, this translates into fully taxed earnings before amortisation of £2.7m, equivalent to earnings per share of 3.6 pence, an increase of 38% over the restated figure for the comparable period to 31 October 2005. Operating cash flow in the period was strong, with £3.8m (94% of profit before tax) generated after capital expenditure. In addition to tax (£0.7m) and dividends (£0.7m), the company spent £4.3m on current and past acquisitions, giving an increase in net debt of £1.9m, of which £0.2m was met from increased hire purchase funding on motor cars, leaving an increase in draw down of group bank facilities of £1.7m. Having reviewed facilities and forward cash flows, the board has declared an interim dividend of 1 penny per share (double the 2005 level) representing less than 3 times adjusted earnings per share in the period. The dividend will be paid on 16 February 2007 to all shareholders on the register at the 26 January 2007, with an ex-dividend date of 24 January 2007. In addition to securing extra resources for the group, through acquisition and lateral hiring of experienced professional teams to fuel continuing growth, the board has extended its strategic plan for the group beyond the original 2007 goals. We shall pursue a combination of organic and acquisitive growth in our current professional service offerings and in extended compatible new areas of professional activity with a view to delivering group activity in excess of £100m by 2010, whilst retaining operating margins at 20% or better. A number of such new areas have been identified and researched and the board is actively targeting opportunities within them. Ric Traynor 16 January 2007 Begbies Traynor Group plc Interim Financial Statement 31 October 2006 Group Profit and Loss Accounts Unaudited Unaudited & restated 6 months to 6 months to Year to 31 Oct 2006 31 Oct 2005 30 April 2006 £'000s £'000s £'000s Turnover 21,857 13,796 33,242 Direct costs (10,191) (6,632) (15,194) Administrative (7,233) (4,259) (10,306) expenses Other operating income 9 40 48 ---------- -------- --------- Operating profit before amortisation 4,442 2,945 7,790 Amortisation of goodwill (1,898) (1,495) (2,556) Interest payable and similar charges (355) (233) (476) ---------- -------- --------- Profit before taxation 2,189 1,217 4,758 Tax on profits on ordinary activities (807) (517) (1,737) ---------- -------- --------- Earnings on ordinary activities 1,382 701 3,021 Dividends paid (749) (361) (732) ---------- -------- --------- Retained earnings 633 340 2,289 ---------- -------- --------- ---------- -------- --------- Earnings per share - in pence Basic 1.8 1.0 4.2 Adjusted 3.6 2.6 6.7 Notes 1. The comparative results for the 6 months to 31 October 2005 have been restated as a result of changes to accounting standards relating to income recognition and the treatment of proposed dividends. Those changes have increased earnings for that period by £95,000. 2. Basic earnings per share are arrived at by dividing earnings by the average number of shares in issue during the period. Adjusted earnings per share add back to earnings the after tax cost of goodwill amortisation. Begbies Traynor Group plc Interim Financial Statement 31 October 2006 Consolidated Balance sheets Unaudited Unaudited and restated At 31 Oct At 31 Oct At 30 April 2006 2005 2006 £'000s £'000s £'000s Fixed Assets Goodwill on group formation 23,418 23,418 23,418 Goodwill on acquisitions 17,282 13,150 14,011 Intellectual property 187 187 187 --------- -------- --------- 40,887 36,755 37,616 Tangible assets 4,283 3,324 3,731 --------- -------- --------- 45,170 40,079 41,347 --------- -------- --------- Current Assets Debtors 22,447 13,940 19,972 Cash at bank and in hand 547 64 598 --------- -------- --------- 22,994 14,004 20,570 Creditors falling due within one year (14,032) (11,791) (10,614) --------- -------- --------- Net Current Assets 8,962 2,214 9,956 --------- -------- --------- Total Assets less Current Liabilities 54,132 42,293 51,303 Creditors falling due after more than one year (14,363) (8,969) (12,938) --------- -------- --------- Net Assets 39,769 33,324 38,365 --------- -------- --------- --------- -------- --------- Capital and Reserves Issued share capital 3,779 3,610 3,744 Other reserves 31,768 28,073 31,032 Profit and loss account 4,222 1,641 3,589 --------- -------- --------- 39,769 33,324 38,365 --------- -------- --------- --------- -------- --------- Movements in Shareholders' Funds Profit for the period after taxation 1,382 701 3,021 Less dividends paid (749) (361) (732) Share issues from acquisitions 1,210 500 2,915 Shares to be issued (439) - 439 Share issues for cash - 5,985 6,223 --------- -------- --------- 1,404 6,825 11,866 Opening shareholders' funds 38,365 26,499 26,499 --------- -------- --------- Closing shareholders' funds 36,769 33,324 38,365 --------- -------- --------- --------- -------- --------- Begbies Traynor Group Plc Interim Financial Statement 31 October 2006 Group Cash Flow Statements Unaudited Unaudited & restated 6 months to 6 months to Year to 31 Oct 2006 31 Oct 2005 30 April 2006 £'000s £'000s £'000s Operating profit before amortisation 4,442 2,945 7,790 Depreciation 533 336 811 Loss/(profit) on sale of fixed 8 1 (5) assets --------- --------- --------- 4,983 3,282 8,596 Working capital movements Debtors (680) (744) (3,383) Creditors 931 (584) 520 --------- --------- --------- Cash inflow from operating activities 5,234 1,954 5,733 Returns and servicing of financing Net finance charges paid (355) (233) (476) Dividends paid (749) (361) (732) Corporation tax paid (669) - (1,192) Capital expenditure and financial investment Fixed assets acquired, net of HP (632) (570) (1,112) funding Proceeds of fixed assets sold 197 115 325 Acquisitions (4,338) (5,087) (7,435) --------- --------- --------- Cash outflow before financing (1,312) (4,182) (4,889) Proceeds of share issues for cash 11 5,985 6,223 Asset finance repaid (390) (233) (549) Loans repaid - (910) (4,000) --------- --------- --------- Movement in net cash (1,691) 660 (3,215) Net bank debt at period commencement (7,437) (4,222) (4,222) --------- --------- --------- Net bank debt at period end (9,128) (3,562) (7,437) --------- --------- --------- Cash at bank and in hand 547 64 598 Amount drawn on bank facility (9,675) (3,626) (8,035) --------- --------- --------- Net bank debt at period end (9,128) (3,562) (7,437) Asset Finance (1,387) (1,069) (1,176) ========= ========= ========= Net debt at period end (10,515) (4,631) (8,613) Status of Financial Statement The interim results for the 6 months ended 31 October 2006 are unaudited and do not comprise full accounts within the meaning of s 240 of the Companies Act 1985. This financial statement, including comparative figures, has been prepared under UK GAAP and the accounting policies set out in the company's Annual Report and Accounts 2006. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Begbies Traynor Group (BEG)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today