Interim Results

Begbies Traynor Group PLC
16 January 2007



RNS Release

16 January 2006


                            Begbies Traynor Group plc

              Interim results for the period ended 31 October 2006


Begbies Traynor Group plc announces interim results for the period ended 31
October 2006.


Period Highlights:

   •Activity increased to £22m, up 58% on 2005 period

   •Adjusted eps of 3.6p, c/f 2.6p in 2005 period

   •Operating cash flow at 94% of PBTA

   •Acquired businesses performing well and fully integrated

   •Interim dividend of 1 penny per share declared

   •International network established and delivering benefits


Ric Traynor, Executive Chairman, said:

'We shall pursue a combination of organic and acquisitive growth in our current
professional service offerings and in extended compatible new areas of
professional activity with a view to delivering group activity in excess of
£100m by 2010, whilst retaining operating margins at 20% or better. A number of
such new areas have been identified and researched and the board is actively
targeting opportunities within them.'

Enquiries, please contact:

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


Chairman's Statement

The first half of the current financial year of the group has delivered a very
satisfactory overall performance in line with the board's expectations and
underpinning current market forecasts for the full year to 30 April 2007. We
remain fully on track to deliver our original growth plan to achieve annualised
turnover of at least £50m at an average margin of 20% or more by the last
quarter of calendar 2007.

The results include the activities of our two newly acquired business insolvency
offices, which have added £2m of turnover in the period between them, bringing
overall group turnover to almost £22m for the six months, despite the
traditional summer holiday seasonal effects. We have continued to grow our
non-insolvency services in corporate finance and investigations, with new teams
recruited in both disciplines. These services have contributed a turnover of
some £2.8m (12.6% of group turnover) in the period.

Activity in our core business insolvency services - held up well, despite the
generally predicted upturn in business insolvency volumes remaining unfulfilled.
There has been some increase in the final quarter of calendar 2006 and market
indicators continue to suggest that there will be a further upturn in 2007, but
this may not be significant until towards the end of the year or possibly in
early 2008.

Consumer debt services, which have been expanded into debt management and
refinancing services, continue to grow, particularly in Scotland, and now
account for 10% of group activity. The operation of the market for Individual
Voluntary Arrangements in England and Wales is currently under review and we
have decided not to expand our position in that market aggressively until there
is clarity over maintainable profitability.

Margins at both gross and net operating levels have held up to expectations,
notwithstanding ongoing expenditure in new operations and the formation of our
international network (BGN), to give an operating profit before amortisation of
goodwill of £4.4m (20.3%) for the period. After interest and corporation tax
provisions, this translates into fully taxed earnings before amortisation of
£2.7m, equivalent to earnings per share of 3.6 pence, an increase of 38% over
the restated figure for the comparable period to 31 October 2005.

Operating cash flow in the period was strong, with £3.8m (94% of profit before
tax) generated after capital expenditure. In addition to tax (£0.7m) and
dividends (£0.7m), the company spent £4.3m on current and past acquisitions,
giving an increase in net debt of £1.9m, of which £0.2m was met from increased
hire purchase funding on motor cars, leaving an increase in draw down of group
bank facilities of £1.7m. Having reviewed facilities and forward cash flows, the
board has declared an interim dividend of 1 penny per share (double the 2005
level) representing less than 3 times adjusted earnings per share in the period.
The dividend will be paid on 16 February 2007 to all shareholders on the
register at the 26 January 2007, with an ex-dividend date of 24 January 2007.

In addition to securing extra resources for the group, through acquisition and
lateral hiring of experienced professional teams to fuel continuing growth, the
board has extended its strategic plan for the group beyond the original 2007
goals. We shall pursue a combination of organic and acquisitive growth in our
current professional service offerings and in extended compatible new areas of
professional activity with a view to delivering group activity in excess of
£100m by 2010, whilst retaining operating margins at 20% or better. A number of
such new areas have been identified and researched and the board is actively
targeting opportunities within them.

Ric Traynor
16 January 2007



                           Begbies Traynor Group plc
                  Interim Financial Statement 31 October 2006
                         Group Profit and Loss Accounts

                               Unaudited         Unaudited &
                                                    restated
                             6 months to         6 months to           Year to
                             31 Oct 2006         31 Oct 2005     30 April 2006

                                  £'000s              £'000s            £'000s

Turnover                          21,857              13,796            33,242

  Direct costs                   (10,191)             (6,632)          (15,194)
  Administrative                  (7,233)             (4,259)          (10,306)
  expenses
  Other operating income               9                  40                48
                                ----------            --------         ---------

Operating
profit before
amortisation                       4,442               2,945             7,790

  Amortisation of                 
  goodwill                        (1,898)             (1,495)           (2,556)

  Interest payable and
  similar
  charges                           (355)               (233)             (476)
                                ----------            --------         ---------

Profit before
taxation                           2,189               1,217             4,758

  Tax on profits on
  ordinary
  activities                        (807)               (517)           (1,737)
                                ----------            --------         ---------

Earnings on
ordinary
activities                         1,382                 701             3,021

  Dividends paid                    (749)               (361)             (732)
                                ----------            --------         ---------

Retained
earnings                             633                 340             2,289
                                ----------            --------         ---------
                                ----------            --------         ---------

Earnings per share - in
pence

  Basic                              1.8                 1.0               4.2
  Adjusted                           3.6                 2.6               6.7

Notes

1. The comparative results for the 6 months to 31 October 2005 have been
restated as a result of changes to accounting standards relating to income
recognition and the treatment of proposed dividends. Those changes have
increased earnings for that period by £95,000.

2. Basic earnings per share are arrived at by dividing earnings by the average
number of shares in issue during the period.

Adjusted earnings per share add back to earnings the after tax cost of goodwill
amortisation.



                           Begbies Traynor Group plc
                  Interim Financial Statement 31 October 2006
                          Consolidated Balance sheets

                                   Unaudited        Unaudited 
                                                 and restated
                                   At 31 Oct        At 31 Oct      At 30 April
                                        2006             2005             2006
                                      £'000s           £'000s           £'000s
Fixed Assets
  Goodwill on group formation         23,418           23,418           23,418
  Goodwill on acquisitions            17,282           13,150           14,011
  Intellectual property                  187              187              187
                                     ---------         --------        ---------

                                      40,887           36,755           37,616
  Tangible assets                      4,283            3,324            3,731
                                     ---------         --------        ---------

                                      45,170           40,079           41,347
                                     ---------         --------        ---------

Current Assets
  Debtors                             22,447           13,940           19,972
  Cash at bank and in hand               547               64              598
                                     ---------         --------        ---------

                                      22,994           14,004           20,570
Creditors
falling due
within one
year                                 (14,032)         (11,791)         (10,614)
                                     ---------         --------        ---------

Net Current
Assets                                 8,962            2,214            9,956
                                     ---------         --------        ---------

Total Assets
less Current
Liabilities                           54,132           42,293           51,303

Creditors
falling due
after more
than one year                        (14,363)          (8,969)         (12,938)
                                     ---------         --------        ---------

Net Assets                            39,769           33,324           38,365
                                     ---------         --------        ---------
                                     ---------         --------        ---------

Capital and Reserves
  Issued share capital                 3,779            3,610            3,744
  Other reserves                      31,768           28,073           31,032
  Profit and loss account              4,222            1,641            3,589
                                     ---------         --------        ---------

                                      39,769           33,324           38,365
                                     ---------         --------        ---------
                                     ---------         --------        ---------
Movements in Shareholders' Funds

Profit for the period after taxation           1,382          701        3,021
Less dividends paid                             (749)        (361)        (732)
Share issues from acquisitions                 1,210          500        2,915
Shares to be issued                             (439)           -          439
Share issues for cash                              -        5,985        6,223
                                             ---------     --------    ---------

                                               1,404        6,825       11,866
Opening shareholders' funds                   38,365       26,499       26,499
                                             ---------     --------    ---------
Closing shareholders' funds                   36,769       33,324       38,365
                                             ---------     --------    ---------
                                             ---------     --------    ---------




                           Begbies Traynor Group Plc
                  Interim Financial Statement 31 October 2006
                           Group Cash Flow Statements

                                      Unaudited       Unaudited &
                                                         restated
                                      6 months to     6 months to           Year to
                                      31 Oct 2006     31 Oct 2005     30 April 2006

                                           £'000s          £'000s            £'000s

  Operating profit before                   
  amortisation                              4,442           2,945             7,790
  Depreciation                                533             336               811
  Loss/(profit) on sale of fixed                8               1                (5)
  assets                                  ---------       ---------         ---------

                                            4,983           3,282             8,596
  Working capital movements
    Debtors                                  (680)           (744)           (3,383)
    Creditors                                 931            (584)              520
                                          ---------       ---------         ---------

Cash inflow
from operating
activities                                  5,234           1,954             5,733

Returns and servicing of
financing
  Net finance charges paid                   (355)           (233)             (476)
  Dividends paid                             (749)           (361)             (732)

Corporation
tax paid                                     (669)              -            (1,192)

Capital expenditure and financial
investment
  Fixed assets acquired, net of HP           (632)           (570)           (1,112)
  funding
  Proceeds of fixed assets sold               197             115               325
  Acquisitions                             (4,338)         (5,087)           (7,435)
                                          ---------       ---------         ---------

Cash outflow
before
financing                                  (1,312)         (4,182)           (4,889)

  Proceeds of share issues for                 
  cash                                         11           5,985             6,223
  Asset finance repaid                       (390)           (233)             (549)
  Loans repaid                                  -            (910)           (4,000)
                                          ---------       ---------         ---------

Movement in
net cash                                   (1,691)            660            (3,215)

Net bank debt
at period
commencement                               (7,437)         (4,222)           (4,222)
                                          ---------       ---------         ---------

Net bank debt
at period end                              (9,128)         (3,562)           (7,437)
                                          ---------       ---------         ---------

  Cash at bank and in hand                    547              64               598
  Amount drawn on bank facility            (9,675)         (3,626)           (8,035)
                                          ---------       ---------         ---------

                           Net bank
                               debt
                          at period
                                end        (9,128)         (3,562)           (7,437)
Asset Finance                              (1,387)         (1,069)           (1,176)
                                          =========       =========         =========
Net debt at
period end                                (10,515)         (4,631)           (8,613)


Status of Financial Statement

The interim results for the 6 months ended 31 October 2006 are unaudited and do
not comprise full accounts within the meaning of s 240 of the Companies Act
1985.
This financial statement, including comparative figures, has been prepared under
UK GAAP and the accounting policies set out in the company's Annual Report and
Accounts 2006.




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