Begbies Traynor agrees new £25m debt facility with HSBC

Professional services restructuring specialist Begbies Traynor agreed to a new debt facility with HSBC, which replaces its existing facility with the same bank.

The group’s existing facility was due to mature in August 2025 after it was secured in 2016. The new debt facility with HSBC sees £25m committed to an unsecured revolving credit facility, which is unchanged from the previous facility.

The new facility will have an additional £10m accordion facility (increased from £5m), subject to certain conditions, which the group believes will allow further debt capacity to support its growth strategy.

Begbies Traynor stated that the overall facility costs broadly in line with the previous facility.

Its new facility has a three-year term until February 2027, but with two one-year extension options, giving a potential maturity date of February 2029.

The group also provided an update on its third quarter stating that its financial performance has been consistent with its expectations.

Begbies Traynor board is confident the group will deliver market expectations for the full year which, current range of analyst forecasts for revenue of £131.1m-£135.2m and adjusted PBT of £21.9m-£22.5m, as compiled by the group.

Commenting on the update, Ric Traynor, executive chairman of Begbies Traynor Group said: “We have continued to perform well across the group and our outlook for the full year remains unchanged, which will extend our strong financial track record of growth.”

“We are pleased to have agreed a new debt facility with HSBC which, alongside the group’s cash generation, provides us with the flexibility to complement our organic growth with selective acquisitions. This will enable us to both build on our decade long track record of growth and execute our strategy to extend our scale and range of services,” he added.