Begbies' results boosted by insolvencies

Core insolvency revenues boosted the performance of Begbies Traynor over the last 12 months, according to its year end results.

AIM-listed Begbies posted profit before tax of £7.2m for the year ended 30 April 2009, up from £5.7m a year earlier.

Revenues leaped to £62.1m from £48.1m, with its core insolvency division contributing £49.7m.

'The extent of business distress, the increasing volume of formal insolvency appointments and our increased capacity to assist troubled businesses, both in respect of their immediate needs and also over the longer period of rehabilitation or administration, mean we are expecting to see our counter cyclical work flow continue to grow this year and into the medium term,' said Begbies executive chairman Ric Traynor.

It wasn't all rosy for Begbies, with its corporate finance division bringing in revenues of £2.3m compared to £4.8m the previous year, resulting in a £1.1m loss.

BTG Tax increased revenues to £7m from £2.6m, an increase influenced by acquisitions during the year. Profits increased to £0.6m, from £0.5m a year earlier, a performance 'below management expectations', according to the results statement.

'Fee pressure and the impact of the tough business environment currently being experienced by our corporate and private clients dampened this anticipated uplift, with a corresponding impact on profitability' for its tax divison.

Further reading:

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