Begbies Traynor says annuals results will be ‘significantly ahead’ of previous year

Ric Traynor

Manchester-based insolvency expert, Begbies Traynor, said full year results are expected to be “comfortably ahead of market expectations” in a trading update for the year to April 30, 2022, today.

It added the figures will also be “significantly ahead” of the prior year, with revenues expected to increase by around 30% to £109.5m.

Adjusted pre-tax profits are expected to increase by approximately 55% to around £17.8m. The group said this reflects the material increase in scale and scope of the group since 2021 following acquisitions.

Begbies had net cash of £4.7m at April 30,2022, compared with £3m the previous year.

The group said its growth has been driven by acquisitions completed since 2021 which have delivered strong results and integrated well into the business.

Activity levels increased over the year resulting from the increased volume of liquidations.

Insolvency numbers nationally returned to pre-pandemic levels as government support measures were removed. Corporate insolvencies increased by 50% to 16,648.

MAF Finance Group, which was acquired in May 2021, traded well in its first year in the group, with growth in line with earn out thresholds.

The group reported a successful year for corporate finance with an increased number of deal completions.

The group’s property advisory and transactional services achieved a good financial performance with segmental revenue growth of around 19% at improved margins.

Acquisitions of Daniells Harrison (January 2022) and Fernie Greaves (October 2021) expanded geographical coverage and traded in line with expectations. There was a strong organic performance reflecting recovery from the lockdown-impacted prior year.

Executive chairman, Ric Traynor, said: “We performed strongly in the financial year with results comfortably ahead of market expectations and significantly ahead of the prior year. This reflected the material increase in scale and scope of the group since 2021 following our acquisitions and investment in both divisions.

“Our strong financial position has further improved and we retain substantial resources to make further acquisitions to build our scale and range of complementary services. We have started the new financial year confident in our outlook and anticipating a year of further progress.”