Begbies Traynor Share Discussion Threads

[edmundshaw] 13/12/2016 10:43

IP? Your wife is intellectual property? Whose?? I assume IP does not stand for internet protocol in this context...

[bonio10000] 13/12/2016 10:00

The insolvency business has been spinning the same lines for a decade.

My wife is a qualified IP and most firms have been laying staff off in the profession.

[dogwalker] 13/12/2016 08:59

Ho-hum. That's the best one can say about today's 'results'. They were in line with someone's expectations though, which is nice.

[edmundshaw] 25/10/2016 23:42

Paul, thanks. Entertaining discussion, good to hear Ric T.'s more informally expressed views; and some interesting points raised - particularly liked the stuff about his seeing Edisons doing OK in a downturn. It's the odd gems like that which cannot be found in reports, and interestingly came from him without prompting.

I always think it is good to ask for a CEO's view of things and what HE (or she) thinks is most important for the business going forward - let them open up rather than answer specific questions. It works, too, you sometimes get into factors you hadn't imagined and also an insight (good or bad) into the guy's thinking. And the question is often appreciated.

Like you, this is to an extent one of my hedges against a business downturn (as opposed to a stock market downturn) with a good yield for waiting.

[paulypilot] 25/10/2016 10:10

Here's my interview with Ric Traynor, which I hope people find interesting.

Please do leave feedback on my website, as it's always good to hear what people like/dislike, etc, as helps me improve them in future.



Regards, Paul.

[topvest] 19/10/2016 21:04

That's why I topped up a few weeks ago. Nice to know Paul agrees with me.

[paulypilot] 18/10/2016 22:12

Hi,

Given worries about Brexit, and the drop in sterling likely to create a tougher environment for retailers & consumers in 2017, I thought it would be interesting to chat to the CEO of Begbies, Ric Traynor.

So I will be interviewing him shortly (on 24 Oct 2016) by phone, and publishing it on my website. I'm not charging a fee, so it's independent.

The reason for posting here is to ask for any questions you would like me to ask on your behalf. So if you wish to submit a question, the form is on this page:


I'll put another link up here in due course, when the audio is published.

Regards, Paul.

[alex1621] 09/8/2016 05:58

I think we may well see a slow down, but with rock bottom interest rates the so-called 'zombies' are likely to continue in business ... I don't see any sign of a change in circumstances, the normal pattern in recessions seems to have been stymied by quantitative easing and unprecedented low interest rates.

[dogwalker] 20/7/2016 10:31

Interesting points, alex1621. The dropping like a stone bit you refer to relating to the shortage of expected new business after the big '08 crisis etc is no doubt holding off committment by a few investors currently i.e. once bitten etc.
But we don't have a universal crisis as such now, more a rolling 'change of circumstances' for individual businesses to cope as best they can with. This should produce customers for Begbie's to help.
I hope we don't get the general confidence crisis you describe in your last sentence, even though Begbie's may well benefit there too, as you say.

[alex1621] 09/7/2016 07:19

It soared during the financial crisis only to drop like a stone as the predicted insolvency growth failed to happen ... they also tend to acquire a great deal using paper, so diluting your shareholding. I look at it as a play on interest rates ... if currency weakness feeds through to higher prices that the Bank of England cannot ignore, it may well do very well in a growing interest rate environment.

[lomcovaks] 08/7/2016 13:32

Me too Norbert and I'm still a few hundred under water despite today's rise. Still, the divi is worth having and things will/must turn around at some point and the banks start cutting loose all the zombie companies on their books.

[norbert colon] 08/7/2016 06:31

I see that BEG has been tipped in the IC as a beneficiary of Brexit namely the potential for an increased number of insolvencies. I have held for a long time as a partial hedge against economic headwinds.

[edmundshaw] 11/5/2016 08:47

EBITA is £3m, finance costs are £0.5m, cover is 6x.

Nebt debt at 31 October 2015 was £11.9m Adjusted profit before tax £2.5m, for the half, before amortization; gearing of 20% (2014: 28%).

Not stripping out amortization may reflect badly on past acquisition decisions, but does not reflect the current balance sheet strength.

[davr0s] 10/5/2016 20:27

So if I read the last half year RNS correctly their debt is 10x annualised profit, but they still pay divi - how does that work?!

[lefrene] 10/3/2016 12:24

Is there a prize for the briefest, least informative trading statement ever?

[bonio10000] 23/2/2016 08:04

The fact sales are declining despite buying turnover says it all.

You buy a company, the previous partner does his stint and moves on.

I just don;t get the model.

[edmundshaw] 17/2/2016 09:35

One day, Rodney...

[bonio10000] 16/2/2016 15:57

Ric still pushing this?

Still telling the world that next year is the one every company is going to the wall?

[asagi] 01/12/2015 13:13

another acquisition today, confirming Begbies' attempts to diversify away from insolvency. This acquisition was 'made' by Begbies' recent property acquisition Eddisons.



acquired the entire issued share capital of TBS&V Limited, which trades as Taylors Business Surveyors and Valuers ("Taylors") for a maximum consideration of £1.85 million. The 20 strong team, including management, will be integrated with the Group's existing Eddisons property services consultancy.

Taylors was established in 1992 and specialises in providing commercial business and property valuations for secured lending purposes on a nationwide basis, on behalf of a wide range of financial institutions, including all of the major high street banks.

In the financial year ended 31 March 2015, Taylors reported annual revenue of £1.5 million and pre-tax profits of £0.2 million. It had gross assets of £0.6 million as at 31 March 2015.

Taylors is around 1/10 the size of Eddisons. £0.5m of cash is being paid to secure the initial consideration of £1.1m, with the rest coming from shares. Maximum consideration of £1.85m for a company whose most recent year showed a £0.2m pre-tax profit and assets of £0.6m. The acquisition "is on a cash free, debt free basis".

Asagi (long BEG)

[norbert colon] 30/9/2015 17:09

Seems like a great acquisition by BEG of P&A equating to only GBP 23,889 per staff member. This looks like terrific value to me and must be earnings accretive from day one.

[speedsgh] 15/7/2015 11:10

Chart doesn't look pretty short term. It's been a hard old slog for BEG in recent years thanks to successive bouts of QE + the resultant artificially low interest rates helping to keep struggling businesses afloat. However with the prospect of interest rate rises starting to come into view, BEG should be well positioned to benefit from the increase in business in their sector. In the meantime happy to keep collecting the generous div payments.