Drop in insolvencies hits Begbies profits

Drop in insolvencies hits Begbies profits

Begbies Traynor sales hit by 9% fall in UK insolvencies during the financial year

PROFITS AND REVENUES at Begbies Traynor have been hit by a drop in the number of corporate insolvencies, the business recovery specialist said.

According to the firm’s annual results for the year to 30 April 2014, revenues fell to £45.8m from £51.1m, while adjusted pre-tax profit fell to £5m from £6.7m. Pre-tax profit, including exceptional items, rose to £3.8m from £2.4m.

The firm said revenues were hit by a 9% fall in UK insolvencies during the financial year, while pre-tax profits were buoyed because of lower exceptional items compared with the previous year. Exceptional items included acquisition costs of £0.4m, and £0.8m associated with the planned relocation of the group’s London offices.

According to the data from the Insolvency Service, the number of corporate insolvencies for calendar year 2013 was 18,856, down from 20,749 in 2012.

“Against this backdrop, the group has maintained its market-leading position, having handled the largest number of corporate insolvency appointments in the UK, and has delivered solid profits and margins,” said chairman Ric Traynor.

During the period Begbies acquired Manchester-based corporate insolvency specialist Cooper Williamson and recently bought London-based Ian Franses Associates.

“With the benefit of our reduced cost base, a strong financial position and committed medium and long-term bank facilities, the group remains well placed to take advantage of opportunities to develop and enhance the business, both organically and through selective acquisitions,” Traynor said.

“We also retain the capacity and expertise to handle an increase in activity levels should they arise, which would result in improved profitability due to the inherent operational gearing in the business.”

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource