Begbies back in the black
A FOCUS on property services has seen insolvency specialist Begbies Traynor return to pre-tax profit, despite insolvency appointments being down on the previous year.
The listed Manchester-based company, which has offices nationwide, described the year to the end of April as one of “solid progress”.
The company said lower levels of market activity meant national insolvency appointments were down 9% in the year to March 2016, which had an impact on revenue and profit.
But the group benefited from investment in its property services division, which now represents 25% of the group’s activities.
It said the integration of Eddisons auction business, which it bought in December 2014, into the group had completed, with synergy savings exceeding original expectations.
Last month, after year end, Begbies acquired Pugh Auction Group, based in Newton-le-Willows, for £4.6m.
Pugh & Co is the largest firm of commercial property auctioneers operating outside of London, with regular auctions held in Leeds and Manchester. Its addition to Eddisons created the third-largest firm of commercial property auctioneers nationally.
The group made a £600,000 pre-tax profit for the year (2015: £700,000 loss) on revenues of £50.1m (2015: £45.4m).
Adjusted profits before tax, including amortisation of intangible assets arising on acquisitions of £2.8m plus acquisition-related costs of £1.1m, increased to £4.5m (2015: 3.6m). Net debt was reduced by £2.4m over the year to £10.4m.
Ric Traynor, executive chairman of Begbies Traynor Group, said: “Last year was one of solid progress for the group with results in line with market expectations and growth in both revenue and profits.”
He added: “Although we remain cautious about activity levels in our counter-cyclical activities in both business recovery and property services in the near term, the recent acquisition of the Pugh auction business, together with the Taylors valuation business, gives the opportunity for growth in earnings in the new financial year.
“We will continue to look for further opportunities to develop and enhance the business, both organically and through selective acquisitions.”
