BTG Consulting (BTG) Trading Update summary

Financial performance highlights

• Revenue grew by approximately 12% to £153m, with 10% organic growth, and adjusted EBITDA rose by 10% to £31.3m, both ahead of consensus expectations.

• Adjusted profit before tax increased by 7% to £23.5m, marking the tenth consecutive year of profit growth.

• Net cash position at year-end was £0.9m, reversing from net debt of £1.4m the previous year, supported by strong free cash flow up 55% to £19.4m.

• Cash generation funded £9.3m in acquisitions, £1.5m in share buybacks, and £6.3m in dividends, while maintaining a net cash position.

Divisional performance and growth drivers

• Business recovery and advisory division saw 11% organic revenue growth, with H2 margins maintained at 26% and increased insolvency activity in higher value cases.

• Advisory income grew strongly, driven by national and international restructuring, special situations M&A, and funding solutions.

• Property advisory and transactional services revenue rose 15% (7% organic), with H2 margins at 17%, supported by property auctions and expanded service offerings.

• Headcount increased 9% in business recovery and advisory (to 798) and 7% in property advisory (to 471), reflecting investment in senior hires.

Strategic initiatives and outlook

• Investment in senior hires and technology aims to accelerate long-term growth and enhance efficiency.

• Expanded service offerings include public sector sustainability and decarbonisation, securing new order book from tenders.

• Strong cash generation and balance sheet support further acquisitions and shareholder returns.

• Visibility of fees on current instructions and a robust acquisition pipeline underpin confidence in continued organic and acquisitive growth.