Insolvency expert reports progress in all aspects of its business
Manchester-based insolvency specialists Begbies Traynor has reported improved revenues and profits for the year, today.
Income in the year to April 30, rose from £52.4% to £60.1m, while pre-tax profits for £3.5m compared with £2.3m last year.
The firm said it had achieved a strong financial performance in line with upgraded expectations.
All areas of the group performed well, with business recovery reporting growth from organic investment, acquisitions and an increase in insolvency numbers nationally, while advisory enjoyed the benefit of the prior year acquisition of Springboard Corporate Finance. The property arm continued to develop through focused investment and acquisition
Begbies also said that strong cash generation has enabled a reduction in net debt and leverage. Net debt decreased to £6m (2018: £7.5m) with leverage (calculated as net debt to EBITDA) improving to 0.7 times (2018: 1.1 times).
It is proposing an 8% increase in its total dividend for the year, the second consecutive year of dividend growth, to 2.6p per share.
Executive chairman, Ric Traynor, said: “We have reported another year of strong financial performance, ahead of our original expectations, in which we have grown the business organically, completed four acquisitions and increased the dividend whilst reducing net debt.
“All areas of the group performed well, reflecting the benefits of recent organic investment, an increase in market activity and the good performance of recent acquisitions.
“Looking ahead, we are better positioned than ever with multiple sources of potential growth supported by a strong financial platform.
“There is currently uncertainty in the UK economy as a result of the Brexit process, but with a combination of our counter-cyclical activities, together with our breadth of services, we are well placed to continue our track record of growth in the new financial year and beyond.”
He added: “We have entered the new financial year with positive momentum and we are confident of delivering current market expectations. As usual, we will provide an update on trading at the time of the company’s annual general meeting in September 2019.”
