Drop in insolvencies hits Begbies

INSOLVENCY specialist Begbies Traynor is continuing to feel the impact of a reduction in the number of insolvency appointments but is nevertheless reporting ‘satisfactory’ first quarter trading.

The listed Manchester-based company, which has offices nationwide, return to pre-tax profit in its last financial year to the end of April.

Trading in the first quarter of the current financial year was “satisfactory”, according to the firm, with performance in both its insolvency and property services divisions in line with expectations, despite what it calls “continuing challenging levels of market activity”.

It pointed to government insolvency statistics for the second quarter of the calendar year, which showed the number of corporate insolvency appointments was broadly unchanged (3,674 appointments compared to 3,652 in the same period of 2015).

For the first six months of the calendar year there was a 2% fall in the number of corporate insolvency appointments to 7,514 compared to 7,664 in the same period of 2015.      

Ric Traynor, executive chairman, said:”Last year was one of solid progress for the group with growth in both revenue and profits, and completion of the integration of our property services division, Eddisons (bought in December 2014).  

“We remain well positioned to take advantage of the cyclicality of the insolvency market, where we have maintained our market-leading position by number of appointments, and to develop our property services.”

He added: “Overall, we continue to be confident of the prospects for the group and will look for further opportunities to develop and enhance the business, both organically and through selective acquisitions.”

The company will hold its annual general meeting later today.