Begbies Traynor Group secures £35m finance package

Begbies Traynor Group plc, the specialist professional services organisation, has secured a £35m finance package from Yorkshire Bank and HSBC.

The funds will refinance part of Begbies Traynor Group’s existing debt and provide finance for further acquisitions. Yorkshire Bank has provided £15m through its Corporate & Structured Finance team in Manchester.

With its head office in Manchester, Begbies Traynor Group is the largest independent insolvency and restructuring business in the UK, advising businesses, financial institutions, accountants, lawyers and individuals in the areas of recovery and turnaround. However, it also provides other specialist services including tax advice, corporate finance, investigations and risk management.

The business was founded in 1989 as Traynor & Partners, and acquired London-based insolvency practice Begbies in 1996. Since then it has made a string of further acquisitions and now has 700 employees working from 38 offices throughout the UK. Begbies Traynor Group floated on AIM in 2004 and currently has a market capitalisation of around £80m.

Owen Malton, a director with Yorkshire Bank’s Corporate & Structured Finance team in Manchester, said Yorkshire Bank had been working with Begbies Traynor Group since 2005 providing finance for assets.

He added: “Begbies Traynor Group is a very successful business with a strong management team, as witnessed by their success in growing the business both organically and through acquisitions. We are delighted to be taking part in this deal, which builds on our existing five-year relationship with the company.

“Yorkshire Bank was selected to support the refinancing in the face of strong competition from other banks. The exercise has shown there is no shortage of funding available for an attractive business such as Begbies Traynor Group.”

Begbies Traynor Group’s finance director John Gittins said: “The refinancing ensures we have funds in place to support our ongoing requirements and pursue our growth strategy. We selected Yorkshire Bank from a range of debt providers due to its speed of response, pro-active approach and understanding of our business.”