PracticeAccounting FirmsBegbies’ margins hit by lack of insolvencies

Begbies' margins hit by lack of insolvencies

Half-yearly profits fall at Begbies Traynor, due to lower than expected flow of insolvencies

BEGBIES TRAYNOR’s half year earnings held firm at more than £34m to 31 October 2010, compared to a year earlier.

Revenues came in at £34.4m compared to £34.2m for the same period a year earlier.

Adjusted profit before tax was £3.6m for the six-month period, compared to £4.3m.

The figures were impacted by lower than expected UK insolvencies, said executive chairman Ric Traynor (pictured).

“If, as we expect, there is some pick up in new insolvency engagements through the remainder of the financial year this would result in a modest improvement in revenues in the second half in the core insolvency division, with the full financial benefit of this emerging in the financial year beginning 1 May 2011,” Traynor added in a statement to the stock exchange.

The lower estimated number of insolvencies had a direct impact on activity levels within the division resulting in the year-on-year 9% decrease in revenue, said the firm. As a result of a cost base geared for higher insolvency volumes, this has reduced operating margins in the division to 24% (2009: 29%). Corporate finance activities were also “subdued” during the period, which reflected market conditions.

 

Related Articles

Professional services sentiment improves as 'Brexit means work'

Accounting Firms Professional services sentiment improves as 'Brexit means work'

1y Stephanie Wix, Writer
Begbies Traynor appointed administrators of William Anelay

Accounting Firms Begbies Traynor appointed administrators of William Anelay

1y Richard Crump, Writer
Begbies Traynor turns profit as insolvency figures slump

Accounting Firms Begbies Traynor turns profit as insolvency figures slump

1y Fraser Simpson, Reporter
Begbies Traynor profits slump amid challenging market conditions

Accounting Firms Begbies Traynor profits slump amid challenging market conditions

2y Richard Crump, Writer
Jobs lost as Begbies Traynor appointed administrator at Liverpool builder

Accounting Firms Jobs lost as Begbies Traynor appointed administrator at Liverpool builder

2y Chris Warmoll, Writer
Begbies snaps up P&A Partnership in pre-pack deal

Accounting Firms Begbies snaps up P&A Partnership in pre-pack deal

2y Richard Crump, Writer
Begbies Traynor reports steep profit fall

Accounting Firms Begbies Traynor reports steep profit fall

2y Chris Warmoll, Writer
Begbies issues full year results warning

Accounting Firms Begbies issues full year results warning

3y Richard Crump, Writer