Insolvency specialist well placed for anticipated rise in activity

Ric Traynor, Begbies Traynor

Manchester-based insolvency specialist Begbies Traynor hailed a strong first half year today following an 11% increase in revenues during the six months to October 31.

The firm, which recently committed to a multi-year lease on its Liverpool office in the city’s Old Hall Street, announced revenues of £37.5m, up from £33.8m, although pre-tax profits declined from 1.9m to £500,000. It is recommending a 1p per share interim dividend, compared with 0.9p per share last year.

Begbies highlighted adjusted profit growth of 25% to £5m, adding its statutory profit before tax reflected increased non-cash acquisition accounting charges.

It said all areas of the group performed well during the six month period. The business recovery and financial advisory side showed good returns from acquisitions and organic investment, including the recruitment of senior fee earners, while the property advisory and transactional services division achieved a recovery in performance from service lines previously impacted by lockdown in the Spring

The group maintained a strong financial position with significant levels of headroom within its committed bank facilities enabling continued investment in organic and acquisition opportunities.

It said its business recovery and financial advisory operations are strongly positioned, with an increase in market insolvency levels expected once short-term support measures for the economy are removed.

The group anticipates it will maintain current levels of performance, in spite of the challenging environment, and said it expects results for the year to be at least in line with current market consensus – adjusted pre-tax profit of £9.8m – which would represent a further year of growth.

Ric Traynor, executive chairman, said: “I am pleased to report a strong financial performance in the period, maintaining our recent track record of growing revenue and adjusted earnings.

“Despite the challenges of lockdowns this year, and a subdued insolvency market, we expect our results for the full year will be at least in line with the current market consensus, which would represent a further year of growth.

“With the benefit of our strong financial position we continue to look for opportunities to develop and enhance the group, both organically and through selective acquisitions, and we remain confident in our outlook for the current and future years.

“We will provide an update on third quarter trading in early March 2021.”

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