Solid showing for insolvency specialist Begbies Traynor

Insolvency specialist Begbies Traynor reported improved revenue and profit levels for the year to April 30, today.

The Manchester-based firm, which also has offices in Liverpool, Preston, Sheffield, Burton, Worcester and Teesside, said it had enjoyed a “solid performance” during the year as revenues frose from £49.7m to £52.4m, while pre-tax profits of £2.3m compared with £600,000 last time.

Adjusted profit before tax came in at £5.6m, up from £4.9m.

Net debt has been reduced from £10.3m a year ago to £7.5m.

The firm also proposes a 9% increase in its total dividend for the year of 2.4p per share, the first increase since 2011.

Executive chairman Ric Traynor said: “It is pleasing to report a further year of progress in developing the group, during which we have continued to deliver earnings growth, reflecting the benefit of the strategic investments we have made in recent years.

“We have also proposed our first increase in the group’s annual dividend since 2011 and at the same time have reported our lowest net debt since 2007.

“We anticipate continuing our track record of earnings growth in the new financial year, with the benefit of a full year contribution from our recent acquisitions, together with growth from our ongoing investments.

“Overall, we remain in a strong position to invest in further opportunities given our financial resources, in line with our strategy to grow both organically and through selective acquisitions.”

He said market levels of activity in insolvency were broadly in line with the prior year, with the UK economy continuing to operate in the low interest rate environment it have been operating in since 2009.

“Against this background, our business recovery and financial advisory business grew its revenue and profit. We also increased our market share, further strengthening our position as the largest UK corporate appointment taker by volume.

“We have continued to invest in this business through recruitment of senior, work-winning partners and staff.”

Mr Traynor said the firm has also made further progress in developing its advisory services in the year through organic and acquisitive means.

“We launched BTG Advisory in the year to bring together our restructuring, financial advisory, corporate finance, forensic and investigation teams, which are complementary to our core business recovery practice and have good growth potential.

“In line with this, in March 2018 we acquired Springboard Corporate Finance.”

Springboard is a highly regarded mid-market corporate finance business operating from offices in Birmingham, London and Nottingham: “We will look to continue to invest and develop our advisory services in the new financial year,” Mr Traynor added.

The property services business also delivered a solid performance with growth in both revenue and profit.

Mr Traynor said: “The group remains strongly cash generative, which has enabled us to fund £1.9m of acquisition and deferred consideration payments whilst continuing to reduce the group’s net debt to £7.5m.

“Overall, we remain in a strong position to invest in further opportunities given our financial resources, in line with our strategy to grow both organically and through selective acquisitions.”