Here is a summary of the financial report for Begbies Traynor Group plc for the fiscal year ending April 30, 2025
## Financial Highlights
Revenue increased by 12% to £153.7 million, with 10% organic growth and 2% acquired growth.
Adjusted EBITDA grew by 11% to £31.7 million.
Adjusted profit before tax rose by 7% to £23.5 million.
Statutory profit before tax was £11.5 million, up from £5.8 million in the previous year.
Free cash flow increased by 56% to £19.4 million.
The company ended the year with a net cash position of £0.9 million, compared to a net debt of £1.4 million in 2024.
An 8% increase in the total dividend for the year to 4.3p, representing the eighth consecutive year of dividend growth.
## Operational Highlights
Strong performance in the Business Recovery and Advisory division, with larger, higher-value cases driving growth.
The Property Advisory division reported strong revenue growth, including significant growth in property auctions.
Investments in senior hires across valuations, asset sales, and consultancy.
## Outlook
The company expects positive momentum to drive revenue growth across the group in the current year.
Revenue is expected to be at the upper end of market expectations, with a further year of profit growth in line with expectations.
The company remains confident in its ability to deliver profit in line with market expectations.
The robust balance sheet supports continued investment in organic growth and acquisition opportunities.
## Chairmans Statement
The company has reported ten consecutive years of profitable growth, tripling in size with a six-fold increase in adjusted profit before tax.
The business recovery division has grown organically, with increased activity levels in larger, higher-value cases.
The financial advisory division has expanded its service offering and reported significant organic growth.
The property advisory division has seen strong growth, including significant growth in property auctions.
The company continues to invest in technology and learning and development support for colleagues.
The board recommends an 8% increase in the total dividend, reflecting confidence in the groups financial position and prospects.
## Business Review
Revenue increased by 12% to £153.7 million, with operating profits increasing by 8% to £25.9 million.
Business recovery and advisory division revenue grew by 11%, with operating profits increasing by 11%.
Property advisory division revenue grew by 15%, with operating profits increasing by 3%.
Group services costs as a percentage of revenue remained stable at 6.7%.
The insolvency market has seen slightly lower corporate insolvencies compared to the previous year but remains high relative to historical levels.
The property advisory business has benefited from resilient market activity levels, with stable transaction levels.
The business recovery team reported increased revenue driven by larger, higher-value cases, maintaining its position as the UK market leader by volume of appointments.
The advisory teams within the business recovery division reported significant growth, with a trebling in size since 2020 through organic growth and M&A.
The property advisory team saw strong growth in property auctions, becoming one of the leading property auction houses in the country by the number of lots.
The group has invested in its people, enhancing learning and development support and introducing new leadership development programs.
## Finance Review
Adjusted EBITDA increased by 11% to £31.7 million, with margins of 20.6%.
Finance costs increased due to higher levels of net debt and IFRS 16 interest charges.
Adjusted profit before tax rose by 7% to £23.5 million.
Non-underlying items include acquisition consideration, negative goodwill, transaction costs, and amortization of intangible assets.
The groups adjusted tax rate was 26%.
Basic and diluted earnings per share were 4.0p and 3.8p, respectively, with adjusted diluted earnings per share increasing by 6% to 10.5p.
The group made acquisitions during the year, including White Maund and West Advisory, with a cash outflow of £9.4 million for acquisitions and earn-out payments.
The group is in a robust financial position with significant liquidity, and all bank covenants were comfortably met during the year.
Free cash flow increased by 56% to £19.4 million.
The groups net assets were £82.0 million, up from £78.4 million in the previous year.
The full financial report includes more detailed information on the companys financial performance, operational review, and financial statements.