Begbies merges corporate finance with insolvency
ACCOUNTANCY group Begbies Traynor has integrated its struggling corporate finance business with its buoyant insolvency arm.
The firm, which has its headquarters in Manchester and offices across the north, said the move involving its BTG McInnes Corporate Finance business will allow it to maximise its resources, particularly on recovery and turnaround jobs.
In common with many other advisers Begbies has been affected by the sharp decline in deal flow over the past 18 months.
In July it reported a full-year loss of £1.1m in the division and 13 job cuts after it said the corporate finance market had, “ground to a virtual halt”.
In contrast its insolvency arm, which accounts for around 80% of income, has thrived during the downturn. In a trading update for the six months to October 31 the group said overall results will be “significantly ahead” of the same period last year thanks to good progress in insolvency.
According to the firm there is still more room for growth as the volume of insolvency cases in the UK has not yet reached predicted peaks. But other divisions, such as tax, are continuing to struggle during the recession. Overall results in these areas will be lower than last year, warned Begbies.
Executive chairman Ric Traynor said: “Overall trading in the first half has been satisfactory. The extent of business distress and our increased capacity to assist troubled businesses are expected to result in our counter cyclical work flow continuing to grow over the medium term.”
At October 31 the group’s net debt, excluding asset related finance, stood at £16m, within covenants for bank facilities of £25m. Begbies will issue its interim results on January 21.
