THE DEPRESSED insolvency market shows no sign of improving, according to Begbies Traynor chairman Ric Traynor.
Commenting at today's AGM of the AIM-listed insolvency services provider, Traynor said market conditions continue to be "subdued" - pointing to a 13% decline in corporate insolvency appointments for H1 2013 compared to a year earlier.
The decline, plus continuing pressure on fees and the value of cases, has led to a reduction in revenue for the first four months of the financial year (commencing 1 May 2013).
Year on year cost reduction of £2m, announced in July, have partially mitigated the revenue fall. Net debt is "broadly in line with expectations", while debtors and WIP are unchanged from the year-end.
Expectation for the year remain unchanged, but with no signs of improvement in the market "the board continues to plan for the persistence of current suppressed market conditions".
The firm saw its 2012 profits and revenues halved, to £2.4m and £51.1m respectively. In April it secured new debt facilities, which Traynor suggested could go towards acquisitions, as well as investment within the business.
Its share price fell 5.25p in this morning's trading, to 33.75p - valuing the company at £30.4m by market cap.
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