Begbies forsees further growth

Begbies forsees further growth

Begbies Traynor's finance director predicts an increase in need for turnaround skills, as businesses face tough times

Begbies Traynor’s finance director has predicted an increase in the need for
the company’s turnaround skills, with tough times ahead for businesses and
individuals over the next couple of years.

Graham McInnes, FD of the listed insolvency group, claimed that it had been
involved in lots of ‘preliminary activity’ with financial institutions and their
debtors, forecasting that the annual number of ailing businesses would increase
from 15,000 over the last few years to over 20,000 through to 2007.

He made the claim as Begbies announced a 29% increase in turnover to £14.2m
for the six months ending 31 October 2005, with operating profit up by 60% to
£2.8m from £1.75m.

The growth had mainly been driven by new acquisitions, but he said he
believed the firm would not struggle in the way other consolidators within the
accounting industry had recently.

‘We’ve had to learn from them, understand the dynamics of the model,’ said
McInnes.

‘You must not let senior people walk away with all of the cash from
consolidators, must not make acquisitions too quickly, and don’t overpay for
them,’ added McInnes.

He expected Begbies to purchase smaller ’boutique’ insolvency and consulting
firms at a rate of ‘one every two months’.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

5m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

5m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

6m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

6m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

6m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

6m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

7m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

7m Emma Smith, Managing Editor