Companies: BEG   

Begbies Traynor is on course to deliver on the three-year plan set out at float in 2004 – to double insolvency work from £20m and add another 20% of complementary sales taking turnover to £50m – by the middle of 2007.

Last year to April was a frenetic one for acquisitions, with up to £15m spent on six companies, which combined with two subsequent deals took the annualised sales run-rate to £40m. Under chairman and co-founder Ric Traynor, the group has maintained its position as the leading independent national business insolvency and recovery services provider and made a push into corporate finance, forensic accounting investigations and the high growth consumer debt solutions space.

The year’s financials were strong, with pre-tax profits before goodwill coming in at £7.3m on a 30% rise in turnover to £33.2m. The general insolvency market – flat until the turn of the calendar year – has improved with business failures and insolvency appointments on the up and Begbies topping the league in terms of corporate insolvency appointments undertaken. In England, the company is thriving in the lucrative consumer debt solutions market and, through its Glasgow office, has swiftly become the second placed provider of Protected Trust Deeds in Scotland (behind AIM-listed Invocas). Traynor is also making noises about the long-term overseas development of the group.

For 2007 – and before acquisitions – shop broker Shore Capital suggests improved profits of £8.9m from a top-line £42m, driving a 16.6% growth in earnings to 7.8p. Backed by Growth Company Investor at 69.5p, the shares have had a stellar run and are on the pricey side on a forward p/e of 23.4 with a PEG ratio of 1.4. Nevertheless, Begbies Traynor is well worth holding for undoubted future growth.