Interim Results

Begbies Traynor Group PLC
16 January 2006


RNS Release

16 January 2006

                           Begbies Traynor Group plc

              Interim results for the period ended 31 October 2005

Begbies Traynor Group plc, the UK's leading independent insolvency, corporate
rescue and recovery specialist, announces interim results for the period ended
31 October 2005.

Financial and business highlights:

   •Turnover increased 29 per cent to £14.2 million (2004: £11 million)

   •Operating profit of £2.8 million up by 60% (2004: £1.75 million)

   •Profit before tax increased by 90% to over £1 million (2004: £570,000)

   •Adjusted earnings per share of 2.5 pence (2004: 1.9 pence)

   •Placing of new equity in July funded further expansion

   •Interim dividend of 0.5 pence per share to be paid on 17 February 2006

   •Entry into the fast-growing 'retail' insolvency market by acquiring W3
    Debt Solutions


Ric Traynor, Executive Chairman, said:

'The board remains confident that the group will deliver full year results to 
30 April 2006 in line with expectations and looks forward to the challenge of
delivering further growth in shareholder value in the 2006/07 financial year.'

Enquiries, please contact:

Ric Traynor                     Neil Boom/Dave Pettet
Executive Chairman              Gresham PR Ltd.
Begbies Traynor Group plc       020 7404 9000
0161 839 0900


Chairman's Statement

I am pleased to present the Interim Statement of the group for the six months
ended 31 October 2005 and to report that we are continuing to deliver on our
strategy of growth through acquisition and development in our core UK corporate
recovery activity, coupled with expansion of our service offerings into related
professional services.

Activity in the six months to 31 October 2005 was as anticipated, given that the
period represents the less productive and active seasons of the year and set
against a continuing static level of overall market volumes, with turnover
increasing by 29% (over the comparable period in 2004) to £14.2 million. At the
operating profit level, the group's performance in the period, at £2.8 million
(2004: £1.8 million), shows an increase in margin to some 20% as a result of the
ongoing dilution of our fixed central overhead burden. Profit before taxation
was £1.1 million, an increase of 90% over the pro-forma comparable figure.
Adding back the amortisation of goodwill, which we continue to aggressively
apply, this translated into earnings per share of 2.5 pence in the period, an
increase of 36% over the equivalent pro-forma figure for the comparable six
month period.

Conversion of operating profit into cash generation from operations remains
strong and our placing of new equity in July has funded our continuing cash
expenditure on acquisitions, leaving drawdown on group bank borrowing facilities
of £15 million at a modest level of £3.6 million at 31 October 2005. In view of
the strong performance in the period, the board has declared an interim dividend
of 0.5 pence per share, in accordance with our goal of delivery of progressive
shareholder value overall. The dividend will be paid on 17 February 2006 to all
shareholders on the register at 27 January 2006.

During the period, we completed two major acquisitions, MCF in the field of
corporate finance and the Southend-based insolvency practice TGF, on which we
have previously reported. The integration of these two businesses into the group
is progressing well. Together, they contributed some £1.8 million to turnover
and £0.6 million to group operating profit in the period.

In November 2005, the group entered the field of 'retail' personal insolvency
through the acquisition of W3 Debt Solutions. We anticipate that this area of
activity is set for further growth as a result of the substantial increase in
demand for personal debt solutions. Our network of offices and qualified
professionals throughout the UK is now well placed to provide these solutions to
local communities alongside our main focus on the business arena. In addition,
we have recently welcomed general insolvency practitioners in Stoke and Halifax
into the group. The benefits of these developments will be seen in the second
half of this financial year and beyond.

Looking forward, our planned programme of consolidation of independent
specialist insolvency service providers and outreach into wider service
provision continues, with a number of possible additions to the group currently
in the pipeline. There are early signs that the business insolvency market may
see a cyclical upturn this calendar year, but this is yet to translate into an
increase in formal appointments.

The board remains confident that the group will deliver full year results to 30
April 2006 in line with expectations and looks forward to the challenge of
delivering further growth in shareholder value in the 2006/07 financial year.

Ric Traynor
16 January 2006


                           Begbies Traynor Group plc
                  Interim Financial Statement 31 October 2005
                         Group Profit and Loss Accounts

                                   Unaudited       Pro-forma         Pro-forma
                                 6 months to     6 months to           Year to
                                 31 Oct 2005     31 Oct 2004     30 April 2005

                                      £'000s          £'000s            £'000s

Turnover                              14,205         11,005             24,705
  Movement in work in progress          (544)           465                529
                                    ----------        --------         ---------
Value of work done                    13,661         11,470             25,234

  Direct costs                        (6,632)         (5,708)          (11,963)
  Administrative expenses             (4,259)         (4,093)           (8,655)
  Other operating income                  40              88               156
                                    ----------        --------         ---------

Operating profit                       2,810           1,757             4,772

  Amortisation of goodwill            (1,495)           (879)           (2,020)

  Interest payable and
  similar charges                       (233)           (308)             (481)

  Pre acquisition profits                  -            (342)             (342)
  (note 1)                          ----------        --------         ---------

Profit before taxation                 1,082             228             1,929

  Tax on profits on ordinary
  activities (note 1)                   (476)            (89)             (618)
                                    ----------        --------         ---------

Earnings on ordinary activities          606             139             1,311

  Dividends                             (402)              -              (330)
                                    ----------        --------         ---------

Retained earnings                        204             139               981
                                    ----------        --------         ---------
                                    ----------        --------         ---------

Earnings per share - in pence
(note 2)

  Basic                                  0.9             0.7               2.6
  Adjusted                               2.5             1.9               5.0


Notes

1. Taxation

Profits up to 30 September 2005, which accrued to the former owners of firms in
the group have been deducted in arriving at the pro-forma profit before taxation
in the 6 months to 31 October 2004. Taxation charges are estimated at the
group's estimated tax rate of 32% after taking credit (at 30%) for allowable
goodwill amortisation.

2. Earnings per Share

Basic earnings per share are arrived at by dividing the profit attributable to
ordinary shareholders in the 6 months to 31 October 2005 by the weighted average
number of shares in issue in that period (69,557,309).

Comparative earnings per share are shown on a pro-forma basis to include all
profits in the respective periods and appropriate weighted average numbers of
shares notionally in issue.

Adjusted earnings per share add back to earnings the after tax cost of goodwill
amortisation.



                           Begbies Traynor Group plc
                  Interim Financial Statement 31 October 2005
                          Consolidated Balance sheets

                                    Unaudited       Unaudited         Audited
                                    At 31 Oct       At 31 Oct     At 30 April
                                         2005            2004            2005
                                       £'000s          £'000s          £'000s
Fixed Assets
  Goodwill on group formation          23,418          23,418          23,418
  Goodwill on acquisitions             13,150           4,559           4,230
  Intellectual property                   187             187             187
                                      ---------        --------       ---------

                                       36,755          28,164          27,835
  Tangible assets                       3,324           2,157           2,526
                                      ---------        --------       ---------

                                       40,079          30,321          30,361
                                      ---------        --------       ---------

Current Assets
  Work in progress                      1,802           1,207           2,036
  Debtors                              11,768           9,125           9,526
  Cash at bank and in hand                 64           2,131             131
                                      ---------        --------       ---------

                                       13,634          12,463          11,693
Creditors falling due
within one year                       (11,876)         (8,965)        (10,501)
                                      ---------        --------       ---------

Net Current Assets                      1,758           3,498           1,192
                                      ---------        --------       ---------

Total assets less 
Current Liabilities                    41,837          33,819          31,553

Creditors falling due
after more than one year               (8,969)         (8,482)         (5,374)
                                      ---------        --------       ---------

                                       32,868          25,337          26,179
                                      ---------        --------       ---------
                                      ---------        --------       ---------

Capital and Reserves
  Issued share capital                  3,610           3,271           3,271
  Other reserves                       28,073          21,927          21,927
  Profit and loss account               1,185             139             981
                                      ---------        --------       ---------

Equity Shareholders' Funds             32,868          25,337          26,179
                                      ---------        --------       ---------
                                      ---------        --------       ---------


Movements in Shareholders' Funds
Profit for the period
after taxation                              606           139            1,311
Less dividends                             (402)            -             (330)
                                        ---------      --------        ---------
                                            204           139              981
Net proceeds on share issues
  On group accretion                          -        20,166           20,166
  On flotation                                -         5,032            5,032
  From acquisition                          500             -                -
  From new equity placing                 5,985             -                -
                                        ---------      --------        ---------
                                          6,689        25,337           26,179
Opening shareholders' funds              26,179             -                -
                                        ---------      --------        ---------
Closing shareholders' funds              32,868        25,337           26,179
                                        ---------      --------        ---------
                                        ---------      --------        ---------



                           Begbies Traynor Group Plc
                  Interim Financial Statement 31 October 2005
                           Group Cash Flow Statements

                                   Unaudited       Pro-forma         Pro-forma
                                 6 months to     6 months to           Year to
                                 31 Oct 2005     31 Oct 2004     30 April 2005
                                      £'000s          £'000s            £'000s

  Total operating profit               1,315             878             2,752
  Depreciation                           336             369               862
  Amortisation                         1,495             879             2,020
  (Profit)/loss on sale of assets          1              (7)               29
                                     ---------       ---------         ---------

EBITDA                                 3,147           2,119             5,663
  Working capital movements
     Work in progress                    468            (298)             (529)
     Debtors                          (1,077)         (1,390)           (2,412)
     Creditors                        (1,494)            474              (984)
                                     ---------       ---------         ---------

Cash inflow from 
operating activities                   1,044             905             1,738

Returns on financing and
servicing of financing
  Net finance charges paid              (233)           (291)             (476)
  Former partners accounts repaid          -          (1,655)           (1,655)
  Dividends paid                        (361)              -                 -

Corporation tax paid                       -               -              (241)

Capital expenditure and
financial investment
  Fixed assets acquired               (1,070)         (1,379)           (2,459)
  Fixed assets sold                      115             633               758
  Acquisitions                        (5,087)         (1,581)           (2,281)
                                     ---------       ---------         ---------

Cash outflow before financing         (5,592)         (3,368)           (4,616)

Financing
  Proceeds of share issues             5,985           5,032             5,032
  Asset finance raised 
  - net of repayments                    267             609               449
                                     ---------       ---------         ---------

Movement in net cash                     660           2,273               865

Net debt at beginning of
the period                            (4,222)         (5,087)           (5,087)
                                     ---------       ---------         ---------

Net debt at the end of 
the period                            (3,562)         (2,814)           (4,222)
                                     ---------       ---------         ---------

  Cash at bank and in hand                64           2,131               131
  Amount drawn on bank facility       (3,626)         (4,946)           (4,353)
                                     ---------       ---------         ---------

                                      (3,562)         (2,815)           (4,222)
                                     ---------       ---------         ---------
                                     ---------       ---------         ---------

Status of Financial Statement

The interim results for the 6 months ended 31 October 2005 are unaudited and do
not comprise full accounts within the meaning of s240 of the Companies Act 1985.
Pro-forma unaudited comparative figures for the 6 months to 31 October 2004 and
the year to 30 April 2005 for the underlying group are given to assist readers
of this financial statement.

The financial statement and comparative pro-forma figures have been prepared
under UK GAAP and the accounting policies of the group as set out in its Annual
Report and Accounts 2005, dated 1 July 2005.



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