BTG Consulting (BTG) H2 2024 earnings summary

Executive summary

• Reported strong FY24 results with revenue up 12% to £136.7m and operating profit up 10% to £23.9m, marking a decade of profitable growth.

• Achieved seventh consecutive year of dividend growth, proposing a 5% increase to 4p per share.

• Four value-accretive acquisitions contributed £5m to revenue, supporting diversification and resilience.

• Maintained a modest net debt position of £1.4m after acquisitions and share purchases, with significant headroom under a new £35m facility.

• Confident outlook for further growth, supported by strong cash generation and enhanced bank facilities.

Financial highlights

• Revenue reached £136.7m, up 12% year-over-year, with 6% organic growth.

• Operating profit rose to £23.9m (from £21.8m), and adjusted pre-tax profit increased 6% to £22.0m.

• Adjusted diluted EPS decreased 2% to 9.9p, mainly due to higher UK corporation tax rates.

• Free cash flow was £12.4m, slightly down due to higher tax, interest, and acquisition outflows.

• Net debt at year-end was £1.4m, compared to net cash of £3.0m in FY23.

Outlook and guidance

• Confident in further growth for FY2025, in line with market expectations (revenue £142.1m–£146.3m, adjusted PBT £23.1m–£24.3m).

• Elevated insolvency levels expected to persist, supported by normalized or higher interest rates.

• Anticipates improvement in advisory and corporate finance as M&A activity recovers.

• Strong pipeline for acquisitions and organic development, especially in property advisory.

• Enhanced debt facility and strong cash generation provide flexibility for growth strategy execution.