Insolvency and property services group on track to deliver forecast annual results
Begbies Traynor released a positive trading update for the six months to October 31, 2022, today, saying it is performing well and is confident of delivering expected annual results, of between £19.7m-£20.6m in adjusted pre-tax profits.
The Manchester-based business recovery, financial advisory and property services consultancy, unveiled double digit growth in the six month reporting period, with revenue expected to increase by circa 12% to c.£58.5m and adjusted pre-tax profits forecast to rise by around 13% to £9m. The group had a net debt of £2.4m at October 31, against net cash of £1.2m at the same time last year.
It reports robust operating cash flow, net of dividend payments, and had acquisition and deferred consideration payments of approximately £7.2m in the six months.
Begbies is confident of delivering its market expectations for the full year, which will extend its strong financial track record of growth, it says.
Its business recovery and financial advisory arm achieved segmental revenue growth of around 10%. Insolvency appointments increased in the period, including a number of larger, mid-market insolvency and restructuring cases, due to increased activity in administrations and the expansion of its London office and offshore practice.
The group said it maintained its market-leading positions, by volume of appointments, with a 14% share of the overall market, ranking it first nationally, and a 10% share of the administration market, resulting in a second place ranking, nationally.
Other advisory services, including Mantra Capital, the finance brokerage acquired in July 2022, traded well in the period with a financial performance in line with expectations.
The property advisory and transactional services achieved segmental revenue growth of circa 18%, which reflect resilient income streams in a challenging economic environment. Budworth Hardcastle, acquired June 2022, traded well in the period and in line with expectations.
Group executive chairman, Ric Traynor, said: “We have performed well in the first half with double digit growth and strong performances in both divisions.
“As corporate financial distress levels rise in a deteriorating economic environment, we anticipate continued momentum in activity levels in insolvency and restructuring and we are better placed than ever to take advantage of this with our expanded presence and enhanced service offering.
“We remain confident of delivering market expectations for the full year, thereby extending our strong financial track record of growth.”
The group will report its half year results for the six months ended October 31, 2022, on Tuesday, December 13.
