Fewer insolvencies dent Begbies’ revenues

REVENUES at regional accountancy group Begbies Traynor have been hit by the falling number of insolvencies.
 
The group, which specialises in corporate insolvencies, saw revenues fall by 10% to £45.8m in the year to April.
 
But pre-tax profits increased from £2.4m to £3.8m. After stripping out exceptionals such as £400,000 of acquisition costs and £800,000 associated with the relocation of the London office, the firm made £5m, down from £6.7m last year.
 
Begbies – which has operations in Birmingham and Stoke-on-Trent – said the figures were in line with expectations and reflected a 9% fall in insolvencies in the year to December.

During the period it acquired Wilmslow firm Cooper Williamson in a deal worth up to £2.5m, and since April it has bought London-based Ian Franses Associates. Both firms also specialise in insolvencies.
 
Chairman Ric Traynor said: “The group has maintained its market-leading position, having handled the largest number of corporate insolvency appointments in the UK, and delivered solid profits and margins. This is despite lower levels of corporate insolvencies in the calendar year 2013 compared to 2012.
 
“With the benefit of our reduced cost base, a strong financial position and committed medium and long-term bank facilities, the group remains well placed to take advantage of opportunities to develop and enhance the business, both organically and through selective acquisitions.

“We also retain the capacity and expertise to handle an increase in activity levels should they arise, which would result in improved profitability due to the inherent operational gearing in the business.”