Profits down by one-third as Begbies Traynor has "year of significant change"

A CHALLENGING year for the insolvency sector with volumes at their lowest level since 2007 hit profits at Begbies Traynor.
 
The listed company, which has its regional headquarters in Leeds alongside offices in Doncaster, Halifax, Hull, Sheffield and York, described the year to the end of April as one of “significant change”.
 
lt has sought to respond to the weak corporate insolvency sector, which fell 14% on the previous year, by a strategic move into property services and also by cutting costs.
 
In December 2014 – five months before year end – it announced the £8.8m acquisition of surveying firm Eddisons, while it has restructured its insolvency team with the loss of 37 roles.
 
Despite turnover increasing from £44.1m to £45.4m, adjusted profits fell to £3.6m from £5.4m the year before.
 
After restructuring costs and other exceptional items, the group made a bottom-line loss of £700,000, compared with a profit of £4.3m in 2014.
 
Despite the fall in underlying profits the group held its dividend at 2.2p per share.
 
Executive chairman Ric Traynor: “This has been a year of significant change for the group. We completed the strategic acquisition of the Eddisons property consultancy in December 2014, made two bolt-on insolvency acquisitions, managed the cost base in our insolvency division and closed the loss-making global risk partners division.
 
“The group is now focussed on two complementary operating divisions which positions the group to take advantage of the cyclicality of the insolvency market, where we have maintained our market-leading position by number of appointments, and developing our property services.”
 
“The combination of the reduced cost base in the insolvency division, the removal of losses from the discontinued business and the full year impact of the Eddisons acquisition leaves the group well placed in the new financial year.
 
“We will continue to look for opportunities to develop and enhance the business both organically and through selective acquisitions.” 

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