Begbies reduces headcount by 6.2%

LISTED INSOLVENCY SPECIALIST Begbies Traynor has reduced its insolvency headcount by 6.2% while reporting “improved” profits and margins in its core insolvency and restructuring division for the first nine months of the current financial year.

Headcount has fallen to 470 as of 31 January 2012, from 501 at the end of April 2011. The firm also warned that its ongoing efficiency initiatives will incur exceptional costs in the second half of the current financial year with “the benefit to be realised in future periods”.

Begbies’ group profit from continuing operations for the first three quarters ended 31 January 2012 was “in line” with the corresponding period a year ago.

Since posting its 2Q results Begbies managed to rid itself of Channel Islands-based insolvency and restructuring business Red Flag.

“Our core insolvency business has maintained its market leading position and continues to benefit from cost savings, resulting in improved profits and margins,” said Ric Traynor, executive chairman of Begbies Traynor Group.

In December last year, the firm reported a £3.4m pre-tax profit for the six months ended 31 October 2011, from £3.1m for the corresponding period last year.

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