Begbies Traynor: Insolvency giant’s revenue nears £140m as it powers to 2027 target
Professional services firm Begbies Traynor revenue has increased by 12 per cent to £136.7m, resulting in a “10 year track record of continual growth” for the firm.
The firm jumped up from the £121.8m recorded in 2023 to nearing £137m over the last financial year, as its adjusted profits before tax also grew to £22m.
Speaking to City PM, Ric Traynor, executive chairman stated that the firm has “seen growth across the vast majority of its service lines” as the insolvency advisory has grown by seven per cent overall, while its property business, “which has been success story over the last year”, grew by 26 per cent.
Over the last financial year, the firm completed four earnings accretive acquisitions which contributed £5m to reported revenue.
While it reports that net debt was lower than originally anticipated, having absorbed acquisition consideration and funding of earnings before tax share purchases totalling £11.1m.
He highlighted that its insolvency practice will continue on at “these levels” for the rest of this year and next year.
He noted: “If our new government can get its act together and organise some growth for us, we’ll start to see those numbers coming down but we still think they’ll be at the low point in the cycle (20,000 plus), as that is part and parcel of a healthy economy.”
Traynor explained that the firm has set its next target at getting to £200m in turnover over the next three years.
“It will be more rapid than that if we find the right acquisitions to make. If we don’t, it’ll be focused on organic growth…. something like three years until we get there.”
He noted the growth will be as a result of a “different mix of work” over that period but explained that “at the moment, we’re still more than half insolvency related”.
“I think by the time we get to the end of that three year period we will be less than half insolvency and it will be the property and advisory services which have grown more distinctly,” he added,
On the acquisitions, he noted the firm has a “pipeline of things” it is currently looking at which covers all of its insolvency advisory and in particular, the property area, but he noted it is “also open minded” on other service lines.
Back in December, Begbies completed the acquisition of a national firm of property auctioneers and Nottingham-headquartered SDL Auctions for an initial cash consideration of £2.5m.