Hike in profit and revenue for insolvency specialist as business failures rise
Begbies Traynor has posted strong growth in revenue and pre-tax profit for its 2023 financial year on the back of a continued rise in business failures.
The insolvency specialist said revenue in the year to 30 April 2023 rose to £121.8m from £110.0m while pre-tax profit jumped to £6m from £4m.
The company has recommended 9% increase in the total dividend for the year to 3.8p, up from 3.5p in 2022 and the sixth consecutive year of dividend growth.
Begbies said it has started the new financial year in strong position and is confident of a further year of growth in line with market expectations, with a strong order book of insolvency revenue (up 19% in the year), driven by continued increase in insolvency market volumes.
Ric Traynor, executive chairman of Begbies Traynor, said: “We have reported another successful year of continued growth, with reported results ahead of original market expectations and increased our dividend by 9%.
“We have a proven growth strategy which, over the five year period between 2019 and 2023, has doubled revenue and tripled adjusted profit before tax, from a combination of organic growth and acquisitions. This growth has been delivered across insolvency and our full range of advisory and transactional services.
“We have started our new financial year confident in our outlook. The increased scale of the group with complementary professional services and an enhanced client base provides a strong platform for us to continue delivering growth. With 80% of income generated from counter-cyclical and defensive activities, we are well-positioned in the current challenging economic environment.
“Our strong balance sheet and cash generation underpin our capacity to deliver organic growth initiatives and progress our pipeline of acquisitions, thereby continuing our track record of growth.”
