Begbies' results boosted by insolvencies
Strong insolvency performance from Begbies in 2008/2009, more of the same expected for the near future
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:
KPMG personal insolvency head to
leave for Tenon