Final Results

Begbies Traynor Group PLC
04 July 2005


RNS Release

4 July 2005

                           Begbies Traynor Group plc

              Preliminary results for the year ended 30 April 2005

Begbies Traynor Group plc, a specialist provider of business recovery and
insolvency services, announces preliminary results for the year ended 30 April
2005.

Financial and business highlights:

   •Profit before tax and amortisation of £4.3 million (full year)

   •Normalised annualised earnings per share of 5.0p

   •Maiden dividend of 0.5p per share proposed

   •Activity up 16% year on year

   •Value of new case work won up 25% year on year

   •Operating cash flow £2.9m (seven months to April 2005)

   •Gearing at 39% at year end


Ric Traynor, Executive Chairman, said:

'All members of the board of Begbies Traynor Group join me in believing that the
platform created, business developments since 30 April 2005 and the continued
support of our teams across the country stand the Group in very good stead for
the current year and beyond.

'Market intelligence suggests that the demand for our core business insolvency
skills may be set to increase and, if that translates into increased activity,
we stand ready and able to meet that demand. In the area of personal insolvency
services, a demand increase appears even more established and we plan to respond
accordingly.'

Enquiries, please contact:

Ric Traynor                     Neil Boom/Rosemary Acfield
Executive Chairman              Gresham PR Ltd.
Begbies Traynor Group plc       020 7404 9000
0161 839 0900


Chairman's Review

The last twelve months has been the most active and exciting period in the
history of Begbies Traynor since the business was founded in 1989. My first
thought, in writing this review of that period, is to thank the partners and
staff of the Group for their help and support through the year and for their
contribution to the delivery of a maiden set of Group results to 30 April 2005
at the higher end of our expectations.

Commercial Development

Over the past year, we have progressed our strategy of growth in our core
corporate insolvency activities and the development of closely related services
to the business community. We have also noted the strong market growth in demand
for domestic personal insolvency services and have begun to undertake work in
this area. This work requires a different operating model from business related
recovery work and we are developing a strategy to appropriately respond to the
market demand.

In February, we welcomed Andrew Segal and his team into our South East region
operation, as part of the continuing development of our presence in this
important region of the country; the opening, in late 2004, of our new flagship
London office in Cornhill was another key step in that development.

At the beginning of May 2005, we also welcomed the corporate finance team of MCF
into the Group. As well as bringing its existing £1.5m per annum activity base
and strong reputation to bear, the MCF team will spearhead our expansion of this
complementary business service into the major commercial cities in which we
already operate.

We augmented our forensic capabilities in the year through the recruitment of
four experienced specialists and, at the beginning of June 2005 by the
acquisition of FDB, which specialises in investigative and tracing assignments.

These acquisitions have had negligible impact on the results to 30 April 2005;
indeed the last two are post balance sheet events. However, we expect all of
these developments to significantly enhance our activity and market penetration
in the current financial year.

Whilst progressing our overall expansion, we have not neglected our core market.
We have continued to recruit experienced partners and professional staff who
share our ambition and vision and to encourage staff learning and professional
qualification. The key measure of our organic development is the initially
estimated value of new cases won and we are pleased that this value has
increased by 25% on the previous year.

During the year, we have built on our experience and specialist knowledge in the
licensed and hospitality trade and insurance industry related work; with our
market penetration increasing in both of these sectors.

We have continued to develop our operations in business restructuring outside
formal insolvency, which is a service increasingly in demand, and to forge our
international professional links to generate and support cross-border work.

Inevitably, given the major changes undertaken, we have parted company with a
small number of partners whose style is not compatible with the direction and
demands of the Group. I thank them for their past efforts and wish them well for
the future.

Financial Development

The organisation of the Group under BTG and its flotation was a time consuming
exercise but has played a key part in helping us to raise the profile of Begbies
Traynor in the marketplace, attract highly regarded partners and staff and
enhance our ability to grow by acquisition. I believe that the solid structural
platform we have created will continue to promote the growth of the Group.

That platform has also provided access to the development funding that the Group
requires. As well as the £5m of new equity secured last October, we have, when
appropriate, the opportunity to seek further equity funding from the investment
market, which should also have the benefit of increasing liquidity in BTG
shares, assisting market price stability.

Results to 30 April 2005

The financial statements formally cover trading for only the seven month period
since the flotation of BTG, but we have included pro forma information for the
whole year, which has been fully audited, in order to give a more meaningful
insight into the Group's results. The following comments relate to the results
for the year to April 2005.

Activity has risen by 16% to £25.7m, as measured by the selling value of all
work done and compared to the same measurement for the year to April 2004
adjusted from the information published in the Accountant's Report in our
prospectus dated 28 September 2004. Both sets of financial statements adopt the
new accounting standard on income recognition; in that unbilled work done is
included at realisable value where we have approval for non-contingent fee
income. I believe that the new standard improves the accuracy of measurement of
activity, but we will not lose sight of the need to invoice for our work to
allow value to be translated into cash.

Profit before tax and goodwill amortisation for the year was £4.3m; a margin of
17% after interest and all of the costs associated with our AIM listed status.
We adopt an aggressive amortisation policy in respect of goodwill on
acquisitions, but have decided not to amortise the goodwill arising out of the
consolidation of the Group and its flotation.

After allowing for amortisation, pre acquisition profits and tax provisions,
earnings were £1.3m. A dividend of 0.5 pence per share, representing
approximately one quarter of those earnings, will be proposed to shareholders at
the Annual General Meeting in September. I hope to meet some of the new
shareholders who have joined us since flotation on that occasion.

Prospects

All members of the board of Begbies Traynor Group join me in believing that the
platform created, business developments since 30 April 2005 and the continued
support of our teams across the country stand the Group in very good stead for
the current year and beyond.

Market intelligence suggests that the demand for our core business insolvency
skills may be set to increase and, if that translates into increased activity,
we stand ready and able to meet that demand. In the area of personal insolvency
services, a demand increase appears even more established and we plan to respond
accordingly.

Ric Traynor
Executive Chairman
1 July 2005


                           Begbies Traynor Group plc
                      Consolidated Profit and Loss Account

                                 5m period to    7m period to         Year to
                                 30 Sept 2004   30 April 2005   30 April 2005
                                       £'000s          £'000s          £'000s

Turnover                                9,275          15,430          24,705
Movement in work in progress              184             345             529
Direct costs                           (4,682)         (7,281)        (11,963)
Administrative expenses                (3,396)         (5,259)         (8,655)
Other operating income                     46             110             156
                                     ----------      ----------      ----------

Earnings before interest,
tax and amortisation                    1,427           3,345           4,772
Amortisation of goodwill                 (858)         (1,162)         (2,020)
                                     ----------      ----------      ----------

Operating profit from
continuing operations                     569           2,183           2,752
Interest payable and similar charges     (227)           (254)           (481)
Pre-acquisition profits                  (342)              -            (342)
                                     ----------      ----------      ----------

Profit on ordinary activities
before taxation                             -           1,929           1,929
Tax on profits on ordinary 
activities                                  -            (618)           (618)
                                     ----------      ----------      ----------

Profit on ordinary activities
after taxation                              -           1,311           1,311
Proposed dividend                           -            (330)           (330)
                                     ----------      ----------      ----------

Retained earnings after
proposed dividend                           -             981             981
                                     ==========      ==========      ==========

Basic earnings per share(pence)                           2.0p


The statutory consolidated profit and loss account for the Group is that shown
above for the 7 month period to 30 April 2005, during which the Group traded,
and relates to acquired activities. Consolidated profit and loss accounts for
the 5 month period to 30 September 2004 and the full year to 30 April 2005 are
included as pro-forma information.

No gains or losses were recognised in the year, other than those included in the
profit and loss account.

As permitted under s230 of CA 1985, no separate profit and loss account is
presented for the Company. The profit after tax of the Company is £345,000.

Fully diluted earnings per share are not materially different from basic
earnings per share.


                           Begbies Traynor Group plc
                                 Balance Sheets
                                At 30 April 2005

                                                            Group      Company
                                                           £'000s       £'000s

Fixed Assets
Intangible assets                                          27,835        1,878
Investments in subsidiary undertakings                          -       18,667
Tangible assets                                             2,526            -
                                                           --------    ---------
                                                           30,361       20,545
                                                           --------    ---------

Current assets
Work in progress                                            2,036            -
Debtors                                                     9,527        4,999
Cash at bank and in hand                                      131            -
                                                           --------    ---------
                                                           11,694        4,999
Creditors falling due within one year                     (10,501)        (330)
                                                           --------    ---------

Net Current Assets                                          1,193        4,669
                                                           --------    ---------

Total assets less current liabilities                      31,554       25,214
Creditors falling due after more than one year             (5,374)           -
                                                           --------    ---------

Net Assets                                                 26,180       25,214
                                                           ========    =========

Capital and reserves
Called up share capital                                     3,271        3,271
Other reserves                                             21,928       21,928
Profit and loss account                                       981           15
                                                           --------    ---------

Equity shareholders' funds                                 26,180       25,214
                                                           ========    =========



                           Begbies Traynor Group plc
                       Consolidated Cash Flow Statements

                                  5m period to    7m period to         Year to
                                  30 Sept 2004   30 April 2005   30 April 2005
                                        £'000s          £'000s          £'000s

Statement of adjustment from
operating profit to net cash flow
from operating activities
Total operating profit                     569           2,183           2,752
Depreciation of tangible fixed assets      309             553             862
Amortisation of goodwill                   858           1,162           2,020
Loss on sale of fixed assets               (11)             40              29

EBITDA                                   1,725           3,938           5,663
(Increase) in work in progress            (184)           (345)           (529)
(Increase) in debtors                   (1,458)           (954)         (2,412)
(Decrease)/increase in creditors        (1,259)            275            (984)
                                      ----------      ----------      ----------

Net cash inflow from
operating activities                    (1,176)          2,914           1,738

Returns on Investment and
Servicing of financing
Net finance charges paid                  (232)           (244)           (476)
Corporation tax paid                         -            (241)           (241)
Capital expenditure and 
financial investment
Capital expenditure payments              (786)           (837)         (1,623)
Proceeds of asset disposals                471             287             758
Acquisitions                            (1,512)         (2,424)         (3,936)
                                      ----------      ----------      ----------

Cash outflow before financing           (3,235)           (545)         (3,780)

Financing
Net proceeds from share
issues for cash                              -           5,032           5,032
Asset finance capital payments            (147)           (240)           (387)
                                      ----------      ----------      ----------

Movement in net cash                    (3,382)          4,247             865
                                      ==========      ==========      ==========

Reconciliation to movement in 
net debt
Asset finance capital repaid               147             240             387
                                      ----------      ----------      ----------

Change in net funds resulting
from cash flows                         (3,235)          4,487           1,252
Asset finance capital raised              (510)           (326)           (836)
                                      ----------      ----------      ----------

Movement in net funds                   (3,745)          4,161             416
Opening net debt                        (5,439)         (9,184)         (5,439)
                                      ----------      ----------      ----------
Movement in net funds                   (9,184)         (5,023)         (5,023)
                                      ==========      ==========      ==========


                           Begbies Traynor Group plc
                        Analysis of changes in net debt

                               Cash at bank     Asset         Amounts      Net
                                and in hand   finance        drawn on     debt
                                                        bank facility
                                     £'000s    £'000s          £'000s   £'000s

As at 1 May 2004                         70      (352)         (5,157)  (5,439)

Cash flow movements                      (8)      147          (3,374)  (3,235)

Non cash changes                          -      (510)              -     (510)
                                   ----------   -------     ----------- --------

Net debt at 30 September 2004            62      (715)         (8,531)  (9,184)

Cash flow movements                      69       240           4,178    4,487

Non cash changes                          -      (326)              -     (326)
                                   ----------   -------     ----------- --------

Net debt at 30 April 2005               131      (801)         (4,353)  (5,023)
                                   ==========   =======     =========== ========


The statutory consolidated cash flow statements for the Group are those shown
above for the 7 month period to 30 April 2005, during which the Group traded.
Consolidated cash flow statements for the 5 month period of trading to 
30 September 2004 and the full year to 30 April 2005 are included as pro-forma
information.


                           Begbies Traynor Group plc

Note 1. Basis of Accounting and Preparation

BTG acquired the trading entities in the Group as from 1 October 2004.
Businesses acquired after 1 October 2004 are consolidated from the date of their
acquisition, using the acquisition method of accounting.

The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards. As permitted by the
Companies Act 1985, no profit and loss account is published in respect of BTG
itself.

Profit shares accruing to partners in subsidiary entities are shown in the
consolidated profit and loss account as direct or indirect operating costs as
appropriate; including the effective ongoing remuneration of the former
controlling equity partners.

Note 2. Earnings Per Share

Basic earnings per share are calculated by dividing the Group profits after
taxation of £1.3m by the number of ordinary shares issued pursuant to the
flotation of the Company on 1 October 2004 (65,424,580), which equates to the
number of shares in issue at the date of these financial statements and to the
average number of shares in issue for the period from 1 October 2004 to 30 April
2005. The resultant earnings per share of 2.0 pence are for the seven month
period ended 30 April 2005.

Basic earnings per share for the year ended 30 April 2005 were 2.6 pence, based
on profits, including the pre-acquisition profit (net of notional corporation
tax at 30%), after tax for the year and a weighted average number of shares
notionally in issue of 59,692,271.

Adjusted earnings per share, reflecting earnings after tax for the whole year
and adding back the net of tax cost of goodwill amortisation, were 5.0 pence for
the twelve months ended 30 April 2005.

The Company has an obligation to issue a further 666,672 shares for value to be
received by the Group of £256,000. The effect of this dilution on earnings per
share is negligible.

Note 3. Statutory Accounts

The financial information set out above does not constitute the Group's
statutory information for the seven months ended 30 April 2005, but is derived
from those accounts. Statutory accounts for this period will be delivered to the
Registrar of Companies following the Company's annual general meeting. The
auditors have reported on these accounts, their reports were unqualified and did
not contain statements under the Companies Act 1985, s237(2) or (3).










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