Begbies Traynor profits slump amid challenging market conditions

Begbies Traynor profits slump amid challenging market conditions

Pre-tax profits at Begbies Traynor slump to£600,000 from £1.5m in the the six months ended 31 October 2015

PRE-TAX profits at Begbies Traynor dived during the six months ended 31 October 2015 owing to challenging market conditions, the insolvency specialist said in its half year results.

A 10% year-on-year reduction in the number of UK corporate insolvencies in the six months to 30 September 2015 helped drag profits down to £600,000 from £1.5m, the firm said. Sales during the period improved to £25.5m from £20.8m.

Begbies said the impact of reductions in revenue in its insolvency division had been “largely mitigated through continued cost control”, while sales across the business were supported by the acquisition of Eddisons, its property consultancy, last year.

Overall market conditions have led to reductions in revenue in its insolvency division but the impact of this has been largely mitigated through continued cost control.

“We have made progress in increasing our market share in this challenging climate and remain the leading UK corporate appointment taker by volume, Ric Traynor, Begbies’ executive chairman said.

The firm acquired the trade and certain assets of The P&A Partnership insolvency practice via a pre-pack deal worth of £860,000 in September and added specialist business property valuation consultancy Taylors after the period end.

“With no indications of a change to the benign financing environment in the UK which would cause an increase in insolvency levels, we remain cautious about activity levels in the insolvency division in the near term and will continue to focus on managing costs accordingly,” Traynor said.

“Overall, our expectations for the year as a whole remain unchanged. We will continue to look for opportunities to develop and enhance the group, both organically and through selective acquisitions. We will provide an update on third quarter trading in early March 2016.”

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