Begbies Traynor making progress in Q1
BEGBIES Traynor, the listed professional services group, said its first quarter trading has been in line with expectations, and it is making progress in its planned sale of its tax and red flag units.
The Manchester-based group. which makes 90% of revenues from insolvency and restructuring activities, said it expects to see some margin improvements throughout the course of the year as the benefits of cost saving measures filter through.
Executive chairman Ric Traynor, will tell shareholders at the company’s annual meeting that trading in the three months to July 31 have been as expected and activity levels are in line with last year.
“The market level of corporate insolvencies has stabilised in the first two quarters of 2011, having fallen during calendar year 2010. Despite the lack of economic recovery, base rates of 0.5% (since May 2009) continue to provide a very benign financing environment for otherwise weak companies.
“Activity levels within the global risk partners division have been slightly below the previous year, with project activity anticipated to be second half weighted this year.”
On the matter of the sale of the tax and red flag research businesses a divestment process has begun, and this is “continuing as planned.”
Traynor said: “We will continue to invest in our two core businesses to enhance their market positions and take advantage of growth opportunities, whilst remaining focused on returning the group to profitable growth,” he adds.
