Property services keep Begbies steady

Ric Traynor

INSOLVENCY specialist Begbies Traynor has maintained half year performance in the face of a ‘tough market’, thanks to its diversification into property services.

The listed Manchester-based company, which has offices nationwide, has reported turnover of £24.5m (2015: £25.5m) and adjusted pre-tax profits of £2.5m (2015: £2.5m) for the six months to the end of October.

It said its solid financial performance reflects the benefit of diversification into property services in December 2014.

The division has seen strong revenue and profit growth, with two recent acquisitions now fully integrated and property services are expected to contribute 30% of full year revenue and profit.

Ric Traynor, executive chairman of Begbies Traynor Group, said: “This strategic development has broadened our income streams, so that we are now operating as two complementary operating divisions, each with good market positions and high levels of profitability.”

In insolvency and restructuring, the firm said it was still seeing strong margins, despite continued challenging market conditions reducing activity levels.

Traynor added: “For the year as a whole, we anticipate growth in earnings, in line with expectations, with the benefits of our investment in property services complementing our market-leading, profitable and cash generative insolvency business.

“We will continue to look for opportunities to develop and enhance the group, both organically and through selective acquisitions. We will provide an update on third quarter trading in early March 2017.”

In November the firm announced that it had secured new debt facilities of £30m.

It said there will be one-off costs incurred in connection with the refinancing in the current financial year, with the full benefit of the reduced finance costs being realised in future years.

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