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Begbies Traynor

February 2007

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Begbies Traynor has reported H1 results to 31 October. Turnover increased 58% to £21.9m with continuing pretax profit increasing 51% to £4.1m (16% organic), reflecting a slightly lower margin, primarily due to the extra costs involved in integrating the two acquisitions made in the summer and £0.5m of one-off costs relating to the prior year. This performance translated into adjusted eps of 3.6p, up from 2.6p in H1 05. The operating margin shaded slightly to 20.3%. In the year to 30 April 2006, Begbies had seen minimal organic growth (see our August update) and the sales growth in these latest results is reckoned to be 16%. But Begbies core business of general insolvency has been flat (though Begbies says there h ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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