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Highlights

  • FY25 revenue expected to grow by ~12% to £153m; adjusted EBITDA up 10% to £31.3m.

  • Free cash flow stood at £19.4m (+55% YoY) supports acquisitions, buybacks, and dividends.

  • Analysts reaffirm BUY ratings with a mean price target of GBp 153.25, implying a +43.22% upside from the last close.

Begbies Traynor Group Plc (LSE:BEG), a UK-based professional services consultancy, had released its trading update recently for the financial year ended 30 April 2025.

The Group expects revenue to increase by approximately 12% to £153 million (from £136.7m in FY24), including around 10% organic growth. Adjusted EBITDA is forecast to grow by 10% year-on-year to £31.3 million, while adjusted profit before tax is expected to reach £23.5 million, up from £22.0 million in FY24.

Operating Performance Across Both Divisions

The Group reported robust performance in both of its core business segments:

  • Business Recovery and Advisory: Posted ~11% organic revenue growth with strong operational discipline, maintaining H2 margins at H1 levels of ~26%.

  • Property Advisory and Transactional Services: Achieved ~15% revenue growth (7% organic) with H2 margins also holding steady at ~17%, benefiting from prior year acquisitions and organic expansion.

Management highlighted continued investment in senior hires to support the long-term growth outlook.

Cash Generation Fuels Growth Strategy

The company returned to a net cash position of £0.9 million at the end of FY25, compared to a net debt of £1.4 million the previous year. This was enabled by strong free cash flow of £19.4 million, up 55% YoY from £12.4m.

The Group used its cash reserves to:

  • Fund £9.3 million in acquisitions and earn-outs

  • Complete £1.5 million in share buybacks

  • Distribute £6.3 million in dividends

This disciplined capital allocation underscores management’s balanced approach to shareholder returns and inorganic growth.

Analyst Sentiment 

All four analysts tracked in the latest consensus have reiterated BUYrecommendations.

Analyst Firm Target Price % Upside from GBp 107.0
Samuel Dindol Stifel Europe GBp 160 49.53%
Portia A. Patel Canaccord Genuity GBp 153 42.99%
James Fletcher Berenberg GBp 150 40.19%

The mean analyst target price stands at GBp 153.25, implying a potential upside of 43.22% from the current share price of GBp 107.0. Notably, the most bullish target of GBp 160 suggests nearly 50% potential upside.