Begbies Traynor hails strong first half amidst economic turmoil

Insolvency specialist, Begbies Traynor, reported a 13% improvement in interim turnover today, for the six month period to October 31, 2023.

Revenues hit £65.9m, up from £58.5m. And while pre-tax profits fell from £5m to £3m, the Manchester-based group said this reflected increased non-cash acquisition accounting charges.

Its net cash position improved from a £2.4m debt at the same point last year to a £1.1m surplus after £4m of acquisition-related payments.

Begbies said its strong balance sheet and significant levels of headroom within committed bank facilities leave it well placed to continue investing in its successful organic and acquisitive growth strategy.

The group signalled its confidence in future trading by lifting its interim dividend payout from 1.2p per share to 1.3p.

In what Begbies hailed a strong first half, it said its insolvency and financial advisory functions performed well, aided by added capacity through recruitment for further growth.

Its property advisory and transactional services continue to provide a solid platform for growth, with group acquisitions trading well and in line with expectations.

The firm said it is confident of delivering full year results in line with current market expectations, of an adjusted profit before tax of of £21.9m-£22.5m.

Looking ahead, Begbies said it anticipates a continued increase in insolvency activity, while financial advisory is anticipated to deliver a broadly consistent second half.

Property advisory and transactional services are expected to deliver another year of strong growth, it said.

Executive chairman, Ric Traynor, said: “I am pleased to report a strong financial performance in the first six months of the financial year.

“We have continued to execute our strategy to grow the business, reporting double digit revenue and profit growth. The group’s financial performance in the first six months leaves the board confident of delivering current market expectations for the full year, which will extend our strong financial track record of growth.”

He added: “Our insolvency team has maintained its market-leading position (by volume) in a growing marketplace nationally, with an increase in insolvency numbers reflecting the current interest rate and inflation environment, whilst our advisory and transactional services teams had a successful six months, reflecting the breadth of advice we provide to our clients, which continue to provide a solid platform for growth.

“Our broad range of services, diversified client base, organic growth initiatives and pipeline of acquisition opportunities, combined with increasing counter-cyclical activity, leaves us confident of continuing to build upon our strong track record in the current year and beyond.”