Begbies Traynor Reports Robust Revenue Growth, Announces 8% Dividend Increase Amid Market Challenges

Begbies Traynor Group PLC reported a 16% increase in revenue to £76.3 million and a 20% increase in EBITDA to £15.3 million for the half year ended September 30, 2024. The property advisory division saw a 24% revenue growth, while the insolvency revenue grew organically by 7%. The company also announced an 8% increase in interim dividend. However, it faces headwinds from increased employment costs and a mismatch between buyer and seller expectations in the property market.

Begbies Traynor Group PLC (FRA:BTA), a leading UK-based property advisory and insolvency firm, reported a robust half-year performance, with revenue growing by 16% to £76.3 million and EBITDA increasing by 20% to £15.3 million [1]. This growth was driven by a combination of organic expansion and strategic acquisitions.

The property advisory division saw a remarkable 24% revenue growth, with 8% being organic. This growth was attributed to increased auction volumes and higher demand for property advisory services. The insolvency division also experienced a 7% organic growth, driven by an increase in higher-value cases.

Despite these positive results, the company faced headwinds from increased employment costs and a mismatch between buyer and seller expectations in the property market. Finance costs also increased due to higher debt levels following share buybacks and IFRS 16 interest charges.

The property services division experienced a slight dip in margins to 16.6% due to normalized activity levels and increased investment costs. The company expects a cautious increase in bank lending in the commercial real estate market over the next 12-24 months, with industrial properties remaining healthy and office activity improving for quality offices [1].

Begbies Traynor aims to match or exceed the Cascade case, a significant case in its workstream, in the next six months. The company focuses on property, targeting up to £5 million turnover to expand geographically and enhance specializations [1].

The company has been successful in targeting higher quality mandates in the business recovery division by investing in its people and processes. This trend is expected to be sustainable as the company continues to prioritize quality over quantity in its work [1].

References:

[1] Gurufocus. (2024, December 10). Begbies Traynor Group PLC (FRA:BTA) Half-Year 2025 Earnings Call Highlights Strong Revenue Growth and Strategic Acquisitions. Retrieved from https://www.gurufocus.com/news/2634560/begbies-traynor-group-plc-frabta-half-year-2025-earnings-call-highlights-strong-revenue-growth-and-strategic-acquisitions