Begbies Traynor fortifies war chest to underpin growth blueprint

The company, which has 10 offices in the East of England, expects to continue profiting from a mix of organic growth and astute acquisition. The new debt facility replaces the group’s existing deal with HSBC which was struck in 2016 and due to mature in August 2025.

Begbies Traynor has secured an unchanged £25m committed, unsecured revolving credit facility plus an additional £10m accordion arrangement – double previously – allowing further debt capacity to support the group’s growth strategy.

The overall facility costs are broadly in line with the previous facility. It involves an initial three-year term until February 2027 with two one-year extension options, providing a potential maturity date of February 2029.

Executive chairman Ric Traynor also addressed the company’s third quarter performance (to January 31) in a trading update which saw the UK share price nudge slightly ahead.

He said: “We have continued to perform well across the group and our outlook for the full year remains unchanged, which will extend our strong financial track record of growth.

"We are pleased to have agreed a new debt facility with HSBC which, alongside the group’s cash generation, provides us with the flexibility to complement our organic growth with selective acquisitions. This will enable us to both build on our decade long track record of growth and execute our strategy to extend our scale and range of services.”

The company’s outlook for the year as a whole remains unchanged and the board remains confident of delivering market expectations for the full year, extending its strong financial track record of growth.

The current range of analyst forecasts are for revenue of £131.1m-£135.2m and adjusted PBT of £21.9m-£22.5m.

Begbies Traynor has Cambridgeshire offices in Cambridge, Huntingdon, St Neots and Peterborough and other East of England operations in Bury St Edmunds, Ipswich, Chelmsford, Brentwood, Colchester and Southend.