Issue of Equity

Begbies Traynor Group PLC
20 March 2007

BEGBIES TRAYNOR GROUP PLC



20 March 2007



Placing of 5,263,159 new Ordinary Shares and 9,210,526 Existing Ordinary Shares
of 5p each at a placing price of £1.52 per share



Begbies Traynor Group PLC ('BTG' or the 'Group') is pleased to announce that it
has today, through Shore Capital, arranged the placing of 5,263,159 new ordinary
shares of 5p, raising £8 million before expenses for the Group.



Also, in response to the significant level of demand, Ric Traynor (Executive
Chairman) and Andrew Dick (Chief Operating Officer), acting jointly, have
agreed, through Shore Capital, to place 4,605,263 existing ordinary shares each
at the same price, which will not only help to satisfy this demand, but will
improve further the level of free float and liquidity in the shares of BTG.



The new ordinary shares will rank pari passu in all respects with the existing
ordinary shares and their admission to trading on AIM is expected to take place
on 26 March 2007.



The proceeds from the placing will be used to fund the Group's stated strategy
of growth organically and by acquisition.  Currently under discussion are
potential acquisitions in a variety of areas such as: business insolvency;
fiscal consultancy; valuations and legal support services. The Group is actively
seeking further opportunities in these areas as well as in the field of
corporate finance, in which it recently acquired Quantum Finance Limited, the
leading independent corporate finance practice in Newcastle, spreading the
Group's influence into the North East and becoming BTG's fourth corporate
finance team.   The Group is also exploring the possibility of a modest overseas
investment in South Africa.  BTG anticipates that the funds raised will provide
adequate resources for all planned acquisitive and organic growth for the near
to medium term.



Following the placing, the issued share capital of the Group will increase by
6.96% to 80,861,968 Ordinary Shares of 5 pence each.  The combined holdings of
Ric Traynor and Andrew Dick (including the holdings of their wives) will reduce
from 57.12% to 42.01% of the total issued share capital and total voting rights.




As a result of the placing, a number of new institutional investors will become
shareholders, and  Caledonia Investments plc will become a significant
shareholder , with 7,516,842 ordinary shares in BTG representing 9.30% of the
increased issued share capital.



Ric Traynor, Executive Chairman of Begbies Traynor Group PLC, said:



'We are delighted with the very strong demand for BTG's shares from a variety of
blue chip institutions, both existing and new investors, and very much welcome
our new shareholders.   Since coming to AIM in October 2004, BTG's growth
strategy has been proved effective .   These new funds, together with existing
facilities, will provide adequate resources for BTG to continue its next planned
phase of organic and acquisitive growth.'



Tim Ingram, Chief Executive of Caledonia Investments plc , said

'We are very pleased to have the opportunity to take a significant stake in
Begbies Traynor Group through this share placing. The company has an excellent
track record and we believe that Caledonia's long term investment approach will
support the management team in the future growth of this already successful
business.'







Enquiries please contact:


Ric Traynor - Executive Chairman            Begbies Traynor Group PLC               0161  839 0900
Graham McInnes - Finance Director           Begbies Traynor Group PLC               0161 839 0900
Guy Peters                                  Shore Capital & Corporate Ltd           0207 408 4090


Information on BTG can be accessed via the Group's website at
www.begbies-traynor.com



Notes to Editors

Caledonia Investments plc is a UK investment trust company, listed on the London
Stock Exchange. It invests in a focused portfolio of significant stakes in
companies and situations where it believes there to be good opportunities for
building value.

For more information please see www.caledonia.com






                      This information is provided by RNS
            The company news service from the London Stock Exchange