Interim Results

Begbies Traynor Group PLC
30 January 2008


30 January 2008

                           Begbies Traynor Group plc

                                Interim Results

                    For the six months ended 31 October 2007

Begbies Traynor Group plc, the specialist professional services organisation,
today announces its interim results for the six months ended 31 October 2007.

Financial Highlights:

   • Revenues up 1.9% to £21.9m (H1 2006: £21.5m) in spite of challenging
     market
   • Profit before tax* fell to £2.1m (H1 2006: £3.7m) reflecting a fall in
     the business insolvencies market and significant investment
   • Adjusted earnings per share fell to 1.7p (H1 2006: 3.2p)
   • Interim dividend maintained at 1.0p per share (H1 2006: 1.0p)

* before amortisation


Operational Highlights:

   • Acquisition of Shaw Tax announced separately today and two insolvency
     practices since half year end
   • Head office move and corporate re-branding completed
   • Continued investment in ongoing and new activities
   • Recent uplift in insolvency activity

Ric Traynor, Executive Chairman, commented:

'The Group is now trading in line with expectations, and has made good progress
expanding beyond its core insolvency base.

'If the current increase in business insolvencies continues, we expect to
significantly improve profitability over the medium term, justifying our
decision not to cut back resources through the quiet period of last year. The
Group will also reap the benefits of our continued investment in acquisitions in
this area.'

For further information, please contact:       www.begbies-traynorgroup.com

Begbies Traynor Group plc                      0161 837 1700
Ric Traynor, Executive Chairman
John Gittins, Chief Financial Officer

Shore Capital & Corporate Limited              020 7408 4090
Guy Peters

Smithfield                                     020 7360 4900
Reg Hoare/Katie Hunt/Will Henderson

About Begbies Traynor Group:

Begbies Traynor Group plc is a specialist professional services organisation
providing independent professional advice and solutions to businesses, financial
institutions, the accountancy professions and individuals in the areas of
corporate finance, recovery, investigation, risk management, commercial finance
and specialist tax advice. It is listed on AIM (Ticker: BEG.L).

Begbies Traynor Group plc

Interim results for the six months ended 31 October 2007

Chairman's statement

For the first time since the group listed on AIM in 2004, I have to report on a
set of results that do not show an increase in Group profitability. Nonetheless,
it is the Board's view that the Group remains on track to deliver its medium
term goals.

Results

Group turnover for the six months increased slightly to £21.9m - acquisitions in
the period contributed £0.5m of sales and overall sales from existing operations
were broadly maintained. The fall in operating profits (EBITA) in the period,
down on the prior period by £1.5m to £2.6m, is a result of what we see as a
temporary setback in the market conditions for our core insolvency operations
and our investment in growth ahead of profit delivery. These investments
included expansion of our existing service teams, the establishment of new
service lines, a new Manchester headquarters and continued development of our
BGN international network.

Amortisation in the six months increased by £0.2m to £0.4m due to the impact of
acquisitions, and after finance costs of £0.5m, up by £0.1m on the previous
period, profit before tax was £1.6m, compared to £3.5m in the previous period.
The adjusted earnings per share were 1.7 pence (2006: 3.2 pence). The basic
earnings per share amounted to 1.4 pence (2006: 3.0 pence).

Cash generation was affected by the fall in profits and by working capital
absorption, principally from the timing of payments which should largely reverse
in the second half year. In addition, we spent some £7.0m on acquisitions and
capital expenditure in support of our medium term strategy. As a result, Group
borrowings increased over the period by £8.5m to £14.3m.

Having reviewed current trading, our continuing investment programme and cash
availability, the board has approved a maintained interim dividend of 1p per
share which will be paid on 7th April 2008 to all shareholders on the register
on 25th March 2008, with an ex dividend date of 19th March 2008.

This set of Interim Results is our first under International Financial Reporting
Standards ('IFRS'), the effect of which on comparative periods is set out in a
separate IFRS restatement announcement made today and is available on our web
site at www.begbies-traynorgroup.com. The principal adjustment to comparatives
relates to the treatment of goodwill amortisation.

Divisional highlights

Activity in our core insolvency business fell by 3% from the level in the prior
period. This represents an outperformance of the market generally, when set
against the sharp fall in the numbers of business insolvencies nationally in the
first nine months of 2007, which were 13% down on 2006 (Source: Government's
Insolvency Service). As a result, margins in this area fell from 31.8% to 30.4%,
as we retained our resource base through this quiet period. This has been one of
the quietest periods for corporate insolvency for nearly 20 years, reflecting
the ready availability of easy credit up until the autumn of 2007.

Our activity in corporate finance grew as a result of the inclusion of our
operation in Newcastle, which was acquired in the second half of the previous
year. We also expanded this operation organically, engaging five new partners
around the country since the end of the prior period, who have been building
their portfolio of assignments. However, as the majority of corporate finance
income is contingent and therefore not recognised until deals complete, their
efforts have not yet been reflected in increased turnover.

We also invested in a number of new business streams in the period: commercial
finance broking, valuations advice and business improvement consulting, all of
which have incurred early stage costs, which have been written off. Results from
our IVA consumer debt operation were flat when compared to the previous period.

Finally, we made our entry into tax consulting services in the period, by
acquisition. I am pleased to report that this area has performed profitably and
fully in line with expectations.

Acquisitions since the period end

In the last quarter of 2007, we made two further acquisitions of insolvency
firms, as previously announced, which are in the process of being integrated
into our North East region. Both of these operations are performing to
expectations. We maintain a pipeline of potential further insolvency
acquisitions.

As announced separately today, we have, this month, completed the acquisition of
Shaw Tax, a long established and profitable specialist tax consultancy operating
from offices in Birmingham and London.

Current trading

Since the end of the period under review, we have begun to see an upswing in
insolvency activity, with new case values in November, December and January
around the country showing marked increases. There is now a consensus in the
marketplace that 2008 will see a sustained increase in the level of business
failures. This is further supported by the Group's own Red Flag Alert
statistics, which monitor adverse actions and other corporate distress signals.
The latest survey, issued this week, showed significant increases in adverse
actions, such as county court judgements and winding up petitions, in the final
quarter of 2007.

Corporate finance activity in the second half remains contingent on deal
completions. However, given the likely economic environment, we have begun to
shift the focus of our corporate finance teams towards business and debt
advisory activities. We believe that, in this way, activity in this area can be
sustained and that the benefits from our recent resource growth will flow
through. We continue to monitor our investment in new advisory and consulting
areas to ensure that they mature rapidly to deliver profit contribution.

Our penetration of the tax consulting market, which focuses on providing
outsourced specialist tax advice via fellow professionals, continues to build on
the acquired base through recruitment and by further acquisition. We now have an
activity base in this area of professional services of some £5m per annum,
including the acquisition referred to above, which we expect to deliver our
required level of profit contribution in the coming year and which we will seek
to further expand.

Summary and outlook

The Group is trading in line with expectations, and has made good progress
expanding beyond its core insolvency base. If the current increase in business
insolvencies continues, we expect to significantly improve profitability over
the medium term, justifying our decision not to cut back resources through the
quiet period of last year. The Group will also reap the benefits of our
continued investment in acquisitions in this area.

Ric Traynor
Executive Chairman
30 January 2008



Begbies Traynor Group plc
Profit & loss account
Six months ended 31 October 2007


                            Unaudited              Unaudited         Unaudited 
                           Six months             Six months              Year
                                ended                  ended             ended
                           31 October             31 October          30 April
                                 2007                   2006              2007
                                £'000                  £'000             £'000

Revenue                        21,930                 21,514            44,483
Direct costs                  (11,584)               (10,191)          (20,053)
Administrative expenses        (7,745)                (7,233)          (15,153)
                           ---------------------------------------------------
Other operating income              -                      9                 9

Earnings before
interest, tax
and amortisation                2,601                  4,099             9,286

Amortisation                     (429)                  (219)             (520)
Finance costs                    (527)                  (397)             (957)
                           ---------------------------------------------------
Profit before tax               1,645                  3,483             7,809
Tax expense                      (570)                (1,239)           (2,769)
                           ---------------------------------------------------
Profit for the period           1,075                  2,244             5,040
                           ===================================================
Attributable to:
Equity holders of the parent    1,171                  2,244             5,040
Minority interest                 (96)                     -                 -
                           ---------------------------------------------------
                                1,075                  2,244             5,040
                           ===================================================

Earnings per share (in pence)
From continuing operations     
                                  
Basic                             1.4                    3.0               6.7
                           ===================================================
Adjusted                          1.7                    3.2               7.0
                           ===================================================



Begbies Traynor Group plc
Consolidated balance sheet
As at 31 October 2007

                           Unaudited             Unaudited           Unaudited 
                               As at                 As at               As at
                          31 October            31 October            30 April
                                2007                 2006                 2007
                               £'000                £'000                £'000
Non-current assets
Goodwill                      43,794               41,326               41,911
Other intangible assets        1,198                  657                  521
Property, plant and
equipment                      6,722                4,283                4,277
                           ---------------------------------------------------
                              51,714               46,266               46,709
                           ---------------------------------------------------
Current assets
Trade and other receivables   25,616               21,746               24,718
Cash and cash equivalents         29                  547                  527
                           ---------------------------------------------------
                              25,645               22,293               25,245
                           ---------------------------------------------------
Total assets                  77,359               68,559               71,954
                           ===================================================
Current liabilities
Trade and other payables      (8,073)             (11,546)             (11,337)
Current tax liabilities         (598)              (1,761)              (1,485)
Financial liabilities        (12,883)                (725)                (667)
                           ---------------------------------------------------
                             (21,554)             (14,032)             (13,489)
                           ---------------------------------------------------
Net current assets             4,091                8,261               11,756
                           ---------------------------------------------------
Non-current liabilities
Trade and other payables      (2,933)              (3,628)              (2,316)
Financial liabilities         (1,367)             (10,335)              (5,131)
Deferred tax liabilities      (1,646)                (556)              (1,000)
Corporation tax                    -                    -                 (193)
                           ---------------------------------------------------
                              (5,946)             (14,519)              (8,640)
                           ---------------------------------------------------
Total liabilities            (27,500)             (28,551)             (22,129)
                           ---------------------------------------------------
Net assets                    49,859               40,008               49,825
                           ===================================================
Equity
Share capital                  4,046                3,779                4,044
Share premium account         21,747               14,185               21,696
Other reserves                17,584               17,584               17,584
Retained earnings              6,458                4,460                6,501
                           ---------------------------------------------------
Equity attributable to:
Equity holders of the
parent                        49,835               40,008               49,825
Minority interest                 24                    -                    -
                           ---------------------------------------------------
Total equity                  49,859               40,008               49,825
                           ===================================================                       

Begbies Traynor Group plc
Consolidated cash flow statement
Six months ended 31 October 2007

                              Unaudited              Unaudited       Unaudited
                       Six months ended       Six months ended      Year ended
                             31 October             31 October        30 April
                                   2007                   2006            2007
                                  £'000                  £'000           £'000

Earnings before interest, 
tax and amortisation              2,601                  4,099           9,286
Depreciation                        668                    533           1,142
Loss on asset sale                    8                      8              27
Increase in receivables            (841)                  (337)         (3,570)
(Decrease) increase in
payables                         (1,776)                   931           1,169
                              ------------------------------------------------
Cash generated by operations        660                  5,234           8,054

Income taxes paid                (1,082)                  (669)         (1,981)

Interest paid                      (398)                  (355)           (700)
                              ------------------------------------------------
Net cash (used in) generated
from operating activities          (820)                 4,210           5,373
                              ------------------------------------------------
Investing activities

Proceeds on disposal of
property, plant and equipment       369                    197             301
Purchases of property, plant
and equipment                    (3,446)                (1,233)         (1,942)
Acquisition of subsidiaries      (3,891)                (4,338)         (6,672)
                              ------------------------------------------------
Net cash used in investing
activities                       (6,968)                (5,374)         (8,313)
                              ------------------------------------------------

Financing activities
HP finance received               1,628                    601           1,055
Dividends paid                   (1,214)                  (749)         (1,505)
Repayments of HP finance
obligations                        (490)                  (390)           (939)
Proceeds on issue of shares          52                     11           7,787
New bank finance raised (repaid)  7,314                  1,640          (3,529)
                              ------------------------------------------------
Net cash generated from
financing activities              7,290                  1,113           2,869
                              ------------------------------------------------
Net decrease in cash and cash
equivalents                        (498)                   (51)            (71)

Cash and cash equivalents at
beginning of period                 527                    598             598
                              ------------------------------------------------
Cash and cash equivalents at
end of period                        29                    547             527
                              ================================================

Note of preparation

1.  These interim financial statements for the period ended 31 October 2007, 
    which are neither audited nor reviewed, have been prepared for the first
    time consistent with IFRS and do not comprise full accounts within the 
    meaning of s 240 of the Companies Act 1985. Results for the comparative 
    periods have been restated under IFRS. The changes in accounting policies 
    resulting from the IFRS restatement, together with the financial impacts of 
    these changes and the full IFRS accounting policies of the Group are set out
    in the document entitled 'IFRS Restatement Report', which can be found on 
    the Group's website, www.begbies-traynorgroup.com.

2.  This unaudited interim report does not comprise the Group's statutory
    accounts.  The financial information in respect of the year ended 30 April 
    2007 is extracted from the statutory accounts under UK GAAP for this period 
    and amended by adjustments arising from the implementation of IFRS.  The 
    statutory accounts for this period have been filed with the Registrar of 
    Companies.  The auditor's report on these accounts was unqualified and did 
    not contain a statement under section 237 (2) or (3) of the Companies Act 
    1985.

3.  Basic earnings per share are arrived at by dividing profit for the period 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.



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