LISTED FIRM Begbies Traynor has managed to increase its profits despite its revenue falling.
According to the firm’s half year results profits before tax grew to £3.4m for the six months ended 31 October, from £3.1m for the same period last year.
However, revenue dropped slightly to £29.4m from £29.8m in 2010. Net debt also rose to £27.3m from £24.2m.
Ric Traynor, executive chairman of Begbies Traynor, told Accountancy Age the increased net debt is due to previous acquisition payments which had come to fruition in the last six months.
He confired Begbies hopes to sell its Red Flag division early next year with a potential buyer lined up and a sale likely in January next year.
Begbies sold its loss-making offshore insolvency operations in the Cayman Islands to local offices. He also hopes to offload its Channel Islands and Kenya practices, which employ five people collectively, in the near future.
In the last 12 months the firm restructured and reduced its staff headcount by 40 people.
“Activity levels in the UK insolvency market have stabilised which, combined with the benefits of our restructuring in the prior year, has resulted in improved operating margins for the group,” Traynor said.
The latest figures do not include the £2.9m Begbies sold its tax division to Smith & Williamson in November for.
The FRC says it best when it says nothing at all
Head of editorial Kevin Reed discusses the result of the EU referendum, and explores it means for accountants
What questions should the profession be asking now the UK has decided to leave the EU?
The accountancy world has reacted to the news that the UK has voted to leave the EU